Stress tests ‘mark the best way forward’

THE fifth stress test exercise on the Irish banks — bringing the total bailout bill for the country’s financial sector to around €70 billion — “doesn’t score highly on fairness” to the taxpayer, but marks the best way forward, according to Central Bank Governor Patrick Honohan.

However, Professor Honohan and Financial Regulator Matthew Elderfield did express hope that a smaller — “but more soundly constituted” — Irish banking sector “should be in a better position to provide loans and other financial services to households and businesses and to support the economic recovery”.

Prof Honohan — who called Ireland’s financial woes “one of the costliest banking crises in history” — added that a downsized banking sector here shouldn’t hamper consumer choice.