BANK OF IRELAND:RICHIE BOUCHER, the chief executive of Bank of Ireland's retail operation, said it had almost €70 billion lent to Irish customers and the Irish operation accounted for half of its international profits.
The Bank of Ireland anticipated in 2006 that the housing market would start slowing and it would have an impact on the economy.
However, huge volatility in financial markets, rapid increases in commodity-price inflation, strengthening of the euro and interest rates rises had contributed to the slowdown happening at a "far faster pace" than had been anticipated.
Since the subprime crisis started in August last year, the problems have translated into the world economy and banks have had billions wiped off their balance book. Banks like Bank of Ireland were borrowing money at 5 per cent on the money markets.
Ireland had a "very well developed" financial system operated by the Financial Regulator which had given "greater transparency" in relation to bank lending.
"We in the Bank of Ireland have significant confidence in our business and the economy. We recognise that some of our borrowers suffer, but we recognise the responsibilities we have to all our stakeholders."