Irish Banks & nonperforming loans .. 3 times higher than Euro area average ( Fitch )

robut

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https://www.irishtimes.com/business/financial-services/fitch-highlights-problem-loans-as-new-boi-shares-get-set-for-trading-1.3148445

Fitch warned over the weekend that the high level of problem loans in the Republic’s banks continue to weigh on the State’s credit ratings, as Bank of Ireland completed a corporate restructuring designed to protect taxpayers in the event of a future crisis.

However, the agency highlighted that the Irish banking system remains weaker than most countries, with non-performing loans of almost 15 per cent as of the end of last year. That’s about three times the euro-area average.
So PIE people .. Something of concern .. or Nothing to see here folks??
 


ger12

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Why are we three times the EU average? Think about it.
 

robut

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Any one claiming this is not a concern need to be given a wide birth. It's deeply worrying.
I only mentioned the no concern part .. sort of flippantly, because i am sure some here might try spin / explain this one away as .. nothing to see here, everything working within acceptable parameters ?
 

Catalpast

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robut

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Fitch Affirms Ireland at 'A'; Outlook Stable

These factors are balanced by

- still elevated levels of public and private sector debt,

- external vulnerabilities and downside risks, primarily related to external developments such as the potential impact of Brexit and shifts in global policies on corporate taxation.

- Headline GDP and expenditure national accounts have been distorted since 2015 by the impact of the activities of multinational enterprises (MNEs), with the level of GDP boosted substantially by activities often unrelated to economic activity in Ireland (for example, the relocation of intangible assets by foreign firms and increases in contract manufacturing). This has the effect of flattering various credit indicators such as debt/GDP and GDP per capita.
If you feel like reading through ALL of that ..
 

fat finger

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Nothing to worry about, the best is yet to come (Colemanballs 2005)
 
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FunkyBoogaloo

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I thought Enda Gummidge said he wouldn't have defaulter stamped on our forehead?... ;)

What are the effects of NPLs in such quantities on the banks, and the wider economy?

Are there separate numbers for each of the Irish banks?
 

SideysGhost

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They never actually cleaned up the mess from the last bubble, just put an artificial floor on property prices, gave all the developers extend-and-pretend low interest-only facilities, and did everything possible to reinflate property prices back to 2006 levels.

When the next property bubble bursts there'll be billions from the Bertie Bubble still outstanding, on top of whatever dodgy debt has been racked up in the last 5 years.
 

Peppermint

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storybud1

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property prices are up, up, up,, this will change the rate of non performing loans, (except the sh1te built in some Roscommon bog)

the large cherry picking is gone, the rest is this small stuff,,

unfortunately I know some people that are stretching themselves again to move to a better area,, (not a bigger house) but the areas without so much social housing (and I only mean to point at the scumbags in social housing, not the decent people in social housing)

This is distorting prices a little as the government is buying social houses everywhere instead of paying rent and screwing the little guy who only wants a scum free area but has no where to go, so he moves up the chain beyond his means, hence more instability/stupid price rises into the market.

I think some areas will settle down and some larger houses will become very desirable in the future that were once not,, others will stay the same,, it all depends on the future dynamics of social housing, crime rates and gentrification rates..

I think Santry or Raheny in North Dublin is the best area to start ripping down and starting again,,
 

robut

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Just remember non-performing loans might not JUST BE housing .. it probably also includes alot of commercial loans.

I was talking last week to a guy who works in a large finance firm that does restructuring and sorting peoples and businesses banking problems.

He said now that the banks are getting "stronger" AND they have "sorted" out / restructured the large million / billion commercial loans they are now after the low hanging fruit .. the small businesses AND they are showing no mercy what so ever.

They are not offering these small businesses the same or none of the preferential terms given to the large million / billion commercial loan businesses .. In alot of cases pay up or close / liquidate
 

robut

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https://www.irishtimes.com/business/financial-services/fitch-highlights-problem-loans-as-new-boi-shares-get-set-for-trading-1.3148445

CreditSights, an independent debt research company, has previously estimated that Bank of Ireland may sell as much as €7.5 billion of “bail-in-able” debt - or what is called minimum requirement for own funds and eligible liabilities – under the new rules.
And BTW, the part in bold .. what does this mean?

Any repercussions for joe/mary Irish citizen?
 

Wascurito

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People are reacting to this as if it's new information.
 

gerhard dengler

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Maybe people thought it was cleared up / restructured alot more than this at this stage??
I think that there is a perception that because the banks appear to be "profitable" that this "profitability" means that loans are being repaid/are not being defaulted upon.
 


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