Irish banks get access to cheap money from the ECB at historically low interest rates. Their entire existence is based on lending this money to their customers at a higher rate. This is a safe bet but Irish banks still manage to fail like clockwork to be profitable. How can this be? This is incomprehensible. What's going on in Irish banks? What am I missing?
Current ECB lending rate stands at 0.75% and mortgages go for around 4.5%. Leaves Irish banks with 3.75% a whapping profit for almost no productive work.