Central Bank governor says surge in household savings is only temporary

At an event facilitated by Professor Stephen Kinsella, the Governor was asked if there was any appetite to revise regulatory capital requirements on banks and credit unions in light of a 'savings glut'. 

Governor of the Central Bank Gabriel Makhlouf said consumer spending will resume once the economy reopens. Picture: PA

The huge increase in savings by Irish households due to the pandemic-related restrictions will not lead to a change in capital requirements on banks and credit unions the Governor of the Central Bank has said.

Gabriel Makhlouf was speaking at the University of Limerick on the outlook for the Irish economy for the year ahead. The closure of retail, bars and restaurants along with a global shutdown of air travel has significantly reduced consumer spending and led to a surge in savings and deposits.