Neary says banks can offset property loan losses - The Irish Times - Tue, Oct 14, 2008
""Ireland's banks are solvent and will be able to offset potential losses on property loans with their better-performing loans, the Financial Regulator said today.
“It's important to state that all banks are solvent and that all savings and deposit are fully safe and secure,'' Pat Neary told an Oireachtas committee today.
The Government has guaranteed about €440 billion in deposits and borrowings of
the six biggest banks to shore up confidence in the financial system that has been battered by the credit crunch. The guarantee was extended to the Irish units of international banks, including HBOS Plc and Royal Bank of Scotland Group Plc.
The regulator said it will place additional supervisors within the State’s banks to monitor operations and tighten reporting requirements on capital, asset quality and individual large loans.
More than one-third of the €39 billion Irish banks have loaned to property developers and construction companies is secured directly on the underlying property, according to the regulator.
While there will “undoubtedly” be some losses on these exposures, these would occur over a number of years will be “offset by profits on performing loans over the same period,” Mr Neary said.""
And What about these 20 extra regulatory supervisory staff with banking experience who are going to be placed in the banks - jobs for the boys? - ole chaps network - dont rock the boat.
Having listened to the regulator Im not brimming with confidence about this.