Irish banks still a concern, says ECB’s Draghi

Irish banks remain a source of concern, the EU’s top banker has warned, putting a damper on any celebrations of the country’s exit from the bailout programme.

Swift and decisive action is needed on outstanding issues relating to the banks, ECB governor Mario Draghi told the European Parliament.

He questioned the adequacy of next year’s budget and the Central Bank’s balance sheet assessment, saying while it showed there was no capital shortfall, it related to just one point in time and so was not forward looking. It “fell short of the stringent test that will be conducted” by the ECB next year prior to the ECB taking over supervision of the banks, Mr Draghi said.