Tracker solution ‘next step’

A solution to remove tracker mortgages from the Irish banks’ balance sheets would provide a significant boost to the country’s banking sector but is unlikely to be found in the next 12 months, according to a leading stockbroking firm.

Analysts at Davy Stockbrokers listed the removal of the low-yield loans from the banks’ balance sheets as one of its key priorities for 2015 alongside loan book stabilisation and the conversion of deferred tax assets (DTA) into government credits, but conceded that all are presently unlikely to happen.

In its banking review of the year released yesterday, Davy described 2014 as a transformational year for the sector which, analysts added, bodes well for increased capital market activity in the coming year.