Banks - Case-by-case assessment of loan forbearance to continue

Davy Research
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Irish banks will continue to provide forbearance to customers on a case-by-case basis. This follows the (belated) confirmation from the European Banking Authority (EBA) that guidelines regarding payment moratoria are reactivated and apply to end-March 2021. Payment breaks in the Irish banking system have reduced materially since peak and new requests have fallen to extremely low levels. While payment breaks are a very useful initial measure to respond to a crisis, they should not be considered longer-term tools. It is sensible that the Irish banking system has reverted to assessing customers based on their circumstances and needs.