Central Bank Governor John Hurley has repeated his belief that Irish banks remain sound despite the recent problems in financial markets.
Speaking to the Institute of Internal Auditors, he said the exceptional performance of the Irish economy over the past 15 years had largely insulated the domestic banking sector from trends towards more risky investments elsewhere.
Mr Hurley said the strength of the Irish economy was continuing to support stability in the financial system. He said banks were profitable and well-capitalised, while the level of bad loans remained low.
On the overall economy, he said the outlook was 'more challenging'. He said the key to restoring competitiveness was containing inflationary pressures, including pay, and improving productivity.
