Out of state, out of mind

Out of state, out of mind
Francesca McDonagh, chief executive, Bank of Ireland Picture: Fergal Phillips

A decade on from the start of the financial crash, bad loans still clog the system. Pressure from the regulators for banks to get rid of them at speed is increasing - but is this not just outsourcing the problem?

Bank of Ireland chief executive Francesca McDonagh was brutally honest last Monday outlining why the bank was reversing course on a longstanding policy of dealing internally with troubled home loans that were deep in arrears. The bank had doggedly stuck to its mantra that it could work through its arrears in its own way. Its figures have backed that up. Its restructuring data shows few customers defaulting once they have signed a restructuring agreement.


Subscribe from just 1€

Exclusive offers

Choose the subscription that is right for you

Monthly Subscription


For the first month

€19.99 Monthly Thereafter

Subscribe today

Cancel anytime

Annual Subscription


For the first year

€199.99 annually thereafter

Subscribe today

Cancel anytime

Quarterly Subscription


For the first 90 days

€55.00 quarterly Thereafter

Subscribe today

Cancel anytime

These offers are not available for current subscribers. Offers and pricing are subject to change without notice.

Terms & Conditions Apply

Please Subscribe or Log in to continue

Subscribe Login

Related Articles

More from The Business Post