‘Overcapitalising’ banks on the cards

CURRENT market uncertainty is making the Central Bank consider the possibility of “overcapitalising” Irish banks.

Speaking at the Association of Compliance Officers in Ireland annual conference, the Central Bank’s head of financial regulation Matthew Elderfield said while it is clear that there has been a significant investment of taxpayer funds to recapitalise the banking system, these measures have not been sufficient to restore market confidence.

“In light of this continuing market uncertainty, additional policy measures are under active consideration, some of which might be categorised under the heading of ‘overcapitalising’ the Irish banks,” he said at the conference.