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

Ulster Bank chief: non-performing loans are keeping interest rates up
Gerry Mallon, outgoing chief executive, Ulster Bank Picture: RollingNews.ie

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.

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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