Pillar banks ‘well-placed’ for ECB assessments

Bank of Ireland and AIB are well-placed to pass the ECB’s comprehensive assessment of the banking system this year, according to Merrion Capital analyst Ciaran Callaghan.

Bank of Ireland shares struggled for a second day following the release of a letter by ECB president Mario Draghi highlighting ongoing concerns about the banking system here, including the high levels of non-performing loans.

Mr Draghi noted that the asset-quality review and stress tests, which make up the comprehensive assessment, would be “different in nature” to the Central Bank’s balance-sheet assessment completed before Christmas.