Irish banks are calling on European policymakers to review bank capitalisation introduced after the 2008 financial crisis, so they can “unlock lending capacity” for households and businesses, as reported in The Irish Times.
The request forms part of a submission by Banking & Payments Federation Ireland to the European Commission’s consultation on the competitiveness of the EU banking sector. It highlights growing concerns that post-crisis capital requirements, while strengthening financial stability, may now be limiting the ability of banks to support economic growth.
According to the Banking & Payments Federation Ireland, more efficient use of capital could help support increased lending at a time when investment is needed to fund economic transitions such as digitalisation and sustainability initiatives.
What this means for businesses in Ireland
For businesses in Ireland, including SMEs and international companies expanding into the jurisdiction, the discussion is particularly relevant. Especially at a time when access to credit and funding remains a key factor in growth planning.
For companies operating in or expanding into Ireland, access to banking and credit remains a critical component of business planning.
If regulatory adjustments do lead to improved lending capacity over time, this could have implications for:
- SME access to working capital.
- Funding availability for start-ups and scale-ups.
- Financing of infrastructure and construction projects.
- Cross-border investment and expansion activity.
Ireland’s economy remains heavily bank-financed. This means any changes to capital rules at European level are likely to have a direct impact on business funding conditions over the medium term.
Ireland’s role as a financing and investment hub
Ireland continues to operate as a key European base for international business, particularly in sectors such as financial services, technology, pharmaceuticals and infrastructure.
While regulatory frameworks are evolving, the broader direction of policy remains focused on maintaining stability while supporting economic growth and investment activity across the single market.
For international companies, this reinforces the importance of having well-structured operations in place when engaging with Irish and European banking systems.
Structure and readiness still matter for funding access
Even if lending capacity increases over time, banks and financial institutions continue to place strong emphasis on governance, structure and compliance when assessing lending applications.
This means companies operating in Ireland must still ensure they have:
- Proper corporate structure and governance.
- Clear financial reporting and administration.
- Compliance with Irish and EU regulatory requirements.
- Transparent operational substance in the jurisdiction.
Businesses that are properly structured are typically better positioned to access funding, banking services and cross-border financial support.
Speak to City Trust
Are you establishing or expanding a business in Ireland? If you require support with company formation, banking setup or operational structuring, City Trust can help.
Contact us today to discuss your requirements and ensure your business is fully prepared for engagement with Irish financial institutions.
