Banks must cut reliance on state guarantees: EC

THE European Commission has warned that banks must wean themselves off state guarantees, saying it is crucial for economic recovery.

Throughout the EU, banks are reducing their reliance on state guarantees, which is a sign that they are gradually returning to market conditions, according to an EU report.

This is not the situation for Irish banks, however, that continue to be covered by state guarantees, and are likely to do so for at least another six months, while undergoing restructuring.