Ireland 'yet to set banking ratios'

7 January 2011

The Irish government has not yet agreed upon loan-to-deposit ratios for its banks in the wake of the country's recent financial crisis and subsequent bailout, it has been claimed.

According to a report from Reuters, an anonymous source with knowledge of the situation revealed that the European Commission, International Monetary Fund (IMF) and European Central Bank recently extended the deadline.

Ireland was forced to request outside assistance in November after its banking sector came close to failure and the terms of the EU/IMF bailout stipulated that limits on lending must be imposed to prevent future crises.

However, the insider said the government is not in a position to set the relevant targets - which Irish financial institutions are expected to meet by 2013 - and no decision has been made on when to announce the finalised requirements.

The report came after Ireland's corporate watchdog confirmed that the ongoing probe into the collapse of Anglo Irish Bank will continue for a lengthy period before reaching any conclusions.

By Claire Archer

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