Ulster Bank chief: non-performing loans are keeping interest rates up

The outgoing chief executive of Ulster Bank, Gerry Mallon, said they're required by the European Central Bank to bring down its non-performing loans (NPLs) to about 5 per cent of its overall book from the current level of 16 per cent.

25th February, 2018
Gerry Mallon, outgoing chief executive, Ulster Bank Picture: RollingNews.ie

The outgoing chief executive of Ulster Bank has said that mortgage interest rates could fall if the Irish banking system was cleared of non-performing loans.

Gerry Mallon said there was a correlation between the current level of interest rates and the fact that Irish banks were still dealing with customers who had not engaged on mortgage arrears.

“If a mortgage system is low risk to the banking system, that allows it to be low cost....

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