Important steps in the process are still under way but nearing completion, namely (i) the purchases by NAMA of the big property-backed loans and (ii) the achievement – despite the very sizable loan losses crystallized by these purchases – of much higher capital ratios.
Developments that can be traced back to the financial crisis – including a still-weak economy, changes in market conditions and practices, and tighter financial regulations – are clearly important reasons for these trends. Community banks play important roles in local economies, and so it is notable that their condition has also improved.