The high cost of mortgages here is being blamed on the capital in banks
A new report shows Irish banks have to put aside around three times more capital than other European countries, to offset the risk of a mortgage.
The Irish Banking and Payments Federation commissioned the report which shows Ireland is paying the high capital because of what happened during the financial crash.
It’s chief executive Brian Hayes says the high capital means high-cost mortgages:
"The the outcome of our report shows that in terms of risk weighted density, it's three times as great in Ireland by comparison to other Eurozone countries so we've got to hold about 37%- about the risk weighted attached to Irish mortgages- whereas it's 13% in other eurozone countries and that means Irish banks have to hold by 2.5 billion for expected loan losses."
More from Cork
-
Lord Mayor Of City Felt Privileged To Represent Cork During Such A Difficult Time As He Faces Into Last Month In Office
Councillor Joe Kavanagh will be handing over the mayoral chains outside of City Hall for the first time ever on June 18th due to the pandemic
-
Expert calls for people to reduce meat intake
Eating too much meat can increase the risk of serious illnesses by as much as 30%.
-
International Care Day Is Being Celebrated At The Bessborough Centre In Blackrock Today
The event highlights the positive impact of the experience of young people in care
-
UPDATE: Teenage Girl Killed And Three Teenage Boys Injured In Knocknaheeny Crash
It's understood the teenage driver of the car fled the scene on foot
-
Angry Farmers To Stage Protest Outside Aldi in Mitchelstown Later
They're appealing to retailers to come to the talks table
-
UPDATE: Toddler Who Was Injured At Her Home On The Boreenmanna Road Has Died
The two year-old was rushed to hospital with traumatic head injuries