The transition has been smooth, exemplified by the results of the ECB’s Comprehensive Assessment of the banks at entry, which confirmed the merits of the asset quality review previously conducted by the Bank. The modest additional capital requirement for PTSB, triggered by the higher capital standard set for the ECB’s Comprehensive Assessment, was raised in the private market.
The concerns I expressed around the standard variable rate in November foreshadowed a wider public focus on this issue, reflecting the widening spread between Irish mortgage rates and those in many other parts of the euro area.