Taoiseach backs banks amid slump

THE TAOISEACH said the Government doesn't need to take action to help banks even after a housing slump sent shares to their lowest…

THE TAOISEACH said the Government doesn't need to take action to help banks even after a housing slump sent shares to their lowest in over a decade.

"There is no requirement for that whatsoever," Mr Cowen said in a Bloomberg Television interview in New York yesterday. "Our banking system is very well capitalised. It's coming off a very strong performance. One of the things that's been affecting market sentiment for the share prices has been a perception about exposure to the construction industry," Mr Cowen said. "It's important to point out the underlying fundamentals of the economy remain strong.

"Even the most pessimistic of forecaster has been indicating that beyond 2009, we should return to potential growth rates of 3 per cent to 4 per cent," he added.