Banks are facing tougher times in the run up to Christmas but the outlook for the banking sector remains positive, the head of Ireland’s National Asset Management Agency (Nama) has said.
Key points:Financials will be hit by lower borrowing costs in the second half of the year and interest rates are expected to stay low for longerTos, one of the biggest stock brokers in Ireland, is down by more than a quarter in 2016 as the Irish stock market is on the back footThe Nama chief says it is important to focus on “good things ahead”Mr Kenny said in a speech to the Irish Chambers of Commerce on Monday that he was concerned about the economic situation in Ireland and the banking industry.
“We have to do something to address the problems that are out there in terms of the banking and financial system,” he said.
“Tos is down on its knees, as is the banking system as a whole.”
Mr Kenny added that he would not rule out a rate cut by the Government.
“I think it’s important to concentrate on good things ahead,” he added.
Tos trading volume fell by nearly 10 per cent in 2016.
The Irish stock exchange has halved in value since April, while the share price of the country’s biggest bank has been hit by the slump in the Irish currency.
“In the short term, the fundamentals of the Irish economy are quite stable and there is a positive trend, but in the medium term it will take a while for it to start to return to its previous levels,” Nama’s chief economist Martin Burke said.
Mr Burke said there was “no sign” that the banking crisis would be resolved within the next year.
“There is a lot of uncertainty around what the future holds for the Irish banking sector and what is the outlook, but I do think we can all look forward to a positive period ahead,” Mr Burke said in the speech.