Problem portfolios While the banks have transferred their troubled commercial property loans to NAMA (and are selling down their non-core portfolios), they retain their legacy portfolio of mortgage, SME and other assets which have a high level of arrears, impairment and embedded losses.
Against this backdrop, one thing seems important: we need to enhance the resilience of the financial system. It will then be better able to withstand shocks, no matter from which direction they come. The starting point for this exercise should be the individual bank.