Banking sector strategy Let me begin with a brief update on the elements of the Central Bank’s strategy to restore the functioning of the banking sector. This strategy has had a number of interconnected elements over the past few years. One important strand has involved restructuring of both the banks’ individual balance sheets and the sector more generally.
The first wave of balance sheet restructuring involved the transfer of hard to value and poorly performing commercial property assets out of the banking system into NAMA. The second phase of this exercise, which is now well progressed, has involved identification and disposal of so-called non-core assets.