OVERSTUFFING at most of the Irish banks is an issue, according to a report on the banking system by Moody's Investors Service. Unhappily, Moody's does not mean that the Irish banks are overstuffed with gold bars, cash or Government bonds. The "overstuffing" involved is really overstaffing, which can only be cured by efforts to reduce the cost/ income ratio.

More interesting though is Moody's assertion that decline in the building societies' share of the new residential mortgage market has become even more pronounced since "First National's conversion into a bank". Wishful thinking, maybe, for some in the market but First National is still a mutual building society. Some confusion with Irish Permanent, perhaps...