Central Bank publishes Financial Stability Report
The Central Bank today published its first stand-alone Financial Stability Report.
The report focuses on the stability of the Irish financial system with a special emphasis on the banking sector.
Speaking at the publication of the report today, the governor, John Hurley, said: "The central aim of this report is to analyse and assess the overall health of the financial system and to point to any possible risks that could potentially hit the system.
"I am pleased with the overall conclusion of the report, namely, that the Irish banking system is currently fundamentally sound despite the slowdown in the growth rate of the economy that occurred in recent years."
The governor repeated that the rate of credit growth, which is largely for property-related purposes, remains a concern to the Central Bank with current rates of credit growth to the household sector well in excess of the corresponding rates in other countries.
He stressed that in discussing vulnerability, it was important to bear in mind the current low level of interest rates.
"There is a danger that this may be causing some participants in the housing market to associate the adoption of the euro with permanently low interest rates. Since most new mortgages are for periods in excess of 20 years, borrowers must take a long-term view of interest rates," he said.
