No further need for bank recapitalisation - Noonan

Wednesday 13 November 2013 22.05
The Central Bank has indicated there will be no need for further bank recapitalisation
The Central Bank has indicated there will be no need for further bank recapitalisation

Minister for Finance Michael Noonan has said 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.

Mr Noonan was addressing the Joint Oireachtas Finance Committee this morning ahead of an ECOFIN meeting on Friday.

He said that 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.

The minister said if there is a need for capital then it will come from private funds or private retention.

Elsewhere, Mr Noonan said that the takeover of Newbridge Credit Union by Permanent TSB was the final option available.

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

He 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.

Mr Noonan said that the proposed European Single Resolution Mechanism that will be discussed at an ECOFIN meeting on Friday will not apply to Irish credit unions.

Later, speaking to the Irish Exporters' Association, Mr Noonan said the eurozone trade surplus is pushing up the value of the euro and this is a problem for Irish exporters and the Irish economy.

He said there is action to deal with EU states running large deficits but there is no action to deal with those running large trade surpluses.

The minister said there needs to be action on this at European level.

He also said there needs to be another look at regulation in the energy sector and that regulation had led to increased prices, which is not was intended or expected.

Mr Noonan also said alternative sources of credit outside the traditional banking sector will have to be developed.