Non-bank lending ‘hub’ in Dublin
Speaking at the European Insurance Forum in Dublin, Mr Moran said that Ireland experienced similar problems to the rest of the eurozone in the wake of the financial crisis: companies were far too reliant on traditional bank funding. Consequently, following the collapse of the financial system, the flow of credit became massively constrained.
And because of new regulatory capital requirements known as Basel III, bank lending will become much more financially prohibitive. Mr Moran said the eurozone needed to develop non-bank lending models. These included a securitisation market for SMEs; insurance companies investing directly in infrastructure projects; a corporate bond market; and private equity.
