Ireland's central bank on Tuesday ordered lenders to use more conservative provisioning for bad loans to boost confidence in the financial statements of the country's lenders.
The new guidelines were issued as part of Ireland's EU-IMF bailout which followed the bursting of a property bubble and the subsequent collapse of the banking sector.
We want to see financial statements prepared on a more conservative basis, with the impairment provisioning methodologies better aligned to economic realities. We also want a greater number of higher quality disclosures, the central bank's director of credit institutions supervision Jonathan McMahon said in a statement.
This ought, over time, to encourage greater confidence in published financial statements, McMahon said.
(Reporting by Conor Humphries; Editing by Greg Mahlich)