Banks' access to wholesale funding 'challenging'

Access by Irish banks to wholesale funding remains challenging, the Central Bank said in a statement today, citing the euro area Bank Lending Survey.

"This situation is expected to remain broadly unchanged during the second quarter of 2009,” the Bank said.

It said the Government guarantee of six banks and the recapitalisation of Bank of Ireland and AIB “have improved access to wholesale funding markets”.

However, this access remains “challenging” the Bank said. The quarterly euro area survey provides qualitative information on changes in credit market conditions.

The survey is conducted across 112 banks in the euro zone area, five of which are Irish.