Banks should loosen the purse strings

IS it too grand a request that Irish banks pass on their share of the €442bn injection being made by the European Central Bank (ECB) over a 12-month period.

ECB president Jean-Claude Trichet has denounced recipient banks for returning large sums of the injected cash when it could be used to increase lending to individuals and companies alike.

Following the Government’s rescue mission, the aim, in the Taoiseach’s words, was to “bail out the Irish economy. It’s about trying to save the Irish economy by having a proper banking system”.