AIB's Executive Chairman David Hodgkinson was speaking at the McGill summer school in Glenties, Donegal yesterday and he confirmed that banks have been 'misspricing' risk, ie they will need to increase the cost of lending to ensure profitability and stability in the bank for the future.
He acknowledged that this concept would prove controversial in light of the billions of Euro the tax payer has injected into this pillar bank in the last few years.
“While this is a very unpopular concept given the amount of taxpayers’ money that we have received – it is nevertheless simply not possible to build a sustainable future for any bank that is lending funds without getting a return.”
FS
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