Monday May 25, 2020

Frankfurt's move to hit Irish banks

Central bank interest rate cuts are supposed to stimulate economic activity, but they pose particular challenges for Irish banks.

10th November, 2013

Central bank interest rate cuts are supposed to stimulate economic activity, but they pose particular challenges for Irish banks, which have been slowly trying to normalise their funding and improve net interest margins.

Because the banks have so many tracker mortgages on their books, every cut by the European Central Bank squeezes the spread between the banks' cost of funding and the income they earn from lending. The automatic reduction in the interest rate on...

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