Friday 20 October 2017

Financial Regulator says recapitalisation would benefit banks

Louisa Fahy

The Financial Regulator, Matthew Elderfield, today said that a "robust" recapitalisation of the country’s banks would help improve its standing among international investors.

The regulator, together with the Central Bank and government, will set new capital buffers for lenders following the near-collapse of the banking system during the financial crisis.

“There is a step change in banking capital and liquidity standards underway in the Basel Committee on Banking Supervision and the European Union,” Elderfield said during a speech in Dublin today.

“A robust recapitalisation exercise will ensure that Ireland’s banks start this process in a stronger position and with a better funding outlook.”

Irish banks will know how much new capital they need after they offload toxic debt to the National Asset Management Agency (NAMA). The government has said it would prefer the banks to raise cash themselves; it will support them if needed.


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