Vol 16 (2019) - Issue 4

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Trends in the Irish Non-Performing Loan Market

Synopsis

Ireland’s non-performing loan ratio was the sixth highest in the European Union, however, the number of non-performing loans on Irish Bank books has halved since 2014. The European Central Bank is closely monitoring Irish Banks to insure they meet a 5% non-performing loan ratio by 2020 in line with European norms. As regulatory pressure to off-load non-performing loans increases, Irish Banks have intensified their efforts to rectify the high ratio of non-performing loans. Various legislative and regulatory polices implemented by the Central Bank of Ireland and Irish Banks alongside secondary loan market sales has significantly reduced the level of non-performing loans on Irish Bank books.