No need for more bank recapitalisations – Noonan

Finance Minister Michael Noonan has said that he has received advice from the Central Bank that there will not be a need for further capital to be injected into the Irish banks.
Minister Noonan was addressing the Joint Oireachtas Finance Committee this morning ahead of an ECOFIN meeting on Friday.

He said that the Irish banks are strong now and will be subject to a European-wide programme of stress-testing next Autumn as preparation for a move to full banking union.
He said if there is a need for capital then it will come from private funds or private retention.
Mr Noonan also told the Committee that the takeover of Newbridge Credit Union by Permanent TSB was the final option available.

He said that he would have preferred to see the situation resolved through the wider credit union movement.

The Minister said it was the Government’s objective to maintain a strong credit union presence in Newbridge – whether that was through a sub-office of another credit union, or whether a group of interested parties came forward to establish a new credit union presence there.

The proposed European Single Resolution Mechanism that will be discussed at this week’s ECOFIN meeting will not apply to Irish credit unions, he added.

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