While the higher interest rate environment has led to improved profitability in recent years, it has not made bank business models any more sustainable, Sharon Donnery said
The recent surge in the profit of Irish banks amid heightened interest rates globally may mask some of the challenges that lenders faced before the sector’s turn in fortunes, according to Central Bank of Ireland deputy governor Sharon Donnery.
The comments came hours after Bank of Ireland reported that its pretax profit rose 5 per cent in the first half of the year to €1.1 billion and the largest lender in the State by assets raised its full-year earnings forecasts. “And if banks are to continue to perform their important function in a changing and increasingly digital society – they must change too,” she said. “This requires you to transform your strategies, systems and digital infrastructure – to keep pace with the digitalisation of the sector, to ensure banks remain operationally resilient within this environment, and to meet increasing consumer demand and expectations for digital financial services.
Sharon-Donnery Bank-Of-Ireland Aib Ptsb European-Central-Bank-Ecb
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Central banks a proven weapon in fight against rising pricesMonetary policy alone cannot deliver growth and prosperity. Any brighter economic future needs input from policymakers and governments
Read more »
Taoiseach urges banks to take ‘responsible approach’ to any fall in interest ratesSimon Harris says he expects mortgage payments to reduce as quickly as they were raised, but accepts these are commercial decisions for banks themselves
Read more »
Harris meets banks over mortgage interest ratesThe Taoiseach has told the banks he wants people to feel the benefits of reduced monthly mortgage repayments as quickly as possible as interest rates begin to fall.
Read more »
Bank levy should be extended to digital banks like Revolut, and used to support community servicesOnline banks are the cats who get the cream in Ireland and should be hit with a super levy in Budget 2025
Read more »
Taoiseach satisfied by security for Paris OlympicsSimon Harris attended the opening ceremony on the banks of the River Seine
Read more »
ECB finds ‘shortcomings’ in banks’ ability to cope with cyber attacksFirst review of lenders’ capacity to withstand breaches comes amid rise in hacks
Read more »