Banks may need to double margins: SBP

No prizes for guessing the implication of this for property values.

sbpost.ie/post/pages/p/story … qqqx=1.asp

And funnily enough there is a piece from Calculated Risk on roughly this subject - how the banks earn their money and what they have on the liability side (funding):
calculatedriskblog.com/2009/ … y-and.html

From the CR piece, part of the push into higher margins is going to come from increased rates on bank issued commercial paper. So even if banks double their margin, this is not going to result in a doubling of interest earnings as costs have been set at a higher base level.