Differences in “tools” have been much discussed recently, in both the abstract (such as how the goals of monetary policy are set and communicated) and the operational (such as the structure of facilities used to provide liquidity to the financial system).
Against this background, funding conditions remain very challenging for Irish banks and this is reflected in their significant recourse to the Eurosystem, which is of particular value to the country at this time. Domestically, the contraction in the real economy and a continuing weak property market have meant that banks have incurred substantial loan impairments.