The Governor of the Central Bank has said there is a connection between the high levels of capital and high solvency ratios at Irish banks and "the fact they are still standing through one of the most severe economic crisis in decades.
"And that's a very good thing," Gabriel Makhlouf added.
The Central Bank Governor was speaking at an online event this morning hosted by accountancy firm Grant Thornton.
He was responding to a question about complaints raised by the banking industry over the high levels of reserves required by regulators like the Central Bank.
Earlier today, Banking and Payment Federation Ireland issued a report which highlighted the high levels of capital reserves held by Irish banks in comparison with their European counterparts.
The report claims the high level of reserves contributes to higher mortgage and lending rates here.
The Governor also said in response to another question that it is important for the Government to have a plan to put the public finances back on a sustainable footing.
He said the level of debt today is "absolutely warranted and affordable" but "at some point soon" there will have to be a plan about how to withdraw supports.