Sir, – David McWilliams argues that Irish banks have become little more than “safe deposit boxes where money goes to die” (August 15th). The evidence suggests otherwise.
Irish banks continue to provide billions of euros in mortgage lending to homebuyers and finance thousands of businesses across every county. They do so under a regulatory framework that is far stronger than the one that existed before the financial crisis. The banking system of today bears little resemblance to that of the Celtic Tiger era, and that is a strength, not a weakness.
Comparisons to lending volumes of 2006 ignore the very different nature of that market. Mortgage lending approached €40 billion then, but a significant share was driven by speculative investment, refinancing and equity withdrawal.
Today’s market is fundamentally different. In 2025, more than 53,000 mortgages worth €16.9 billion were approved, the highest level since records began in 2011. First-time buyers accounted for more than 31,000 approvals worth almost €10 billion. Mortgage drawdowns by first-time buyers reached 27,652, the highest annual level since 2008.
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The same applies to business lending. SME borrowing behaviour has changed markedly since the financial crisis, both here and across the EU, reflecting stronger balance sheets, retained earnings and a wider mix of funding sources.
Irish banks have provided an average of €5 billion in lending to SMEs annually over the past three years. These are not the statistics of a banking system that has stopped lending.
A healthy housing market requires public and private capital working together. The Irish financial landscape has evolved alongside observed global trends. Businesses today draw on a wider range of funding sources than they did two decades ago.
Equity investors, private capital, institutional investment and international funding all play a larger role than in the past. This diversification is a sign of a more mature financial system, not necessarily a weaker one.
There is a legitimate discussion to be had about how Ireland can encourage greater productive investment and increase housing supply. But we should not confuse prudent lending with an absence of lending. A resilient banking system supports households, businesses and economic growth through good times and bad. – Yours, etc,
BRIAN HAYES,
Chief executive,
Banking & Payments Federation Ireland,
Dublin 2.
