What is going on in the Irish banks?

[barryqwalsh]

It's perplexing that after all the billions of euro pumped into the banks, they are still fragile and - according to the latest European stress tests - Irish banks are among the weakest in Europe. How could that be when the economy is growing at three times the EU average, when the demand for credit is strong and when interest rates are at their lowest level in years, underpinning local demand?

Our massive tracker mortgage debt is a ticking timebomb waiting to be set off by an ECB rate hike - Independent.ie

 

[Dekster]

"The demand for Credit is strong" is code for "people are overextending themselves". The Irish recovery was done on the credit card, not fundamentally improved economic conditions.

 

[Toddsterpatriot]

View attachment 84699

It's perplexing that after all the billions of euro pumped into the banks, they are still fragile and - according to the latest European stress tests - Irish banks are among the weakest in Europe. How could that be when the economy is growing at three times the EU average, when the demand for credit is strong and when interest rates are at their lowest level in years, underpinning local demand?

Our massive tracker mortgage debt is a ticking timebomb waiting to be set off by an ECB rate hike - Independent.ie

It's perplexing that after all the billions of euro pumped into the banks, they are still fragile

They keep raising capital requirements. This forces the banks to buy "safe" government bonds which pay 0% interest (or less). You can't make your banks safer if they have no earnings.