Rescue remedies for Ireland’s battered banks
Saturday, November 08, 2008, By Brian O’Mahony, Chief Business Correspondent
examiner.ie/irishexaminer/pages/ … qqqx=1.asp
Figures provided by the regulator recently showed just how up to their necks in it the banks have been, with about 60% of their lending involving property and related activities.
Recent figures suggest Bank of Ireland’s exposure to the sector was 10% above the average figure at 70% of its total lending.
That massive exposure to property has been the underlying story of the sharp decline in bank share prices and for the scare some weeks ago that forced the Government to guarantee the deposits and borrowings of the six Irish owned financial institutions.
Rumours abound as to which of the banks was about to go under.
Anglo Irish was seen as the number one suspect but there are unconfirmed reports that one of the two major banks, either AIB or BOI, had a huge loan repayment looming that could not be refinanced due to the global scarcity of credit.