the business plans which they agreed in order to receive the sanction of the european commission dgcomp for the state aid they received, to reach a net interest margin of 2 per cent. given they are constrained by contracts on the trackers, there is only a limited range of options for achieving this. only then can they build and hold sufficient capital to be compliant with international regulations, to be fully financially autonomous and not dependent on an implicit backstop of the state, to have the resilience to deal with future shocks and to serve customers properly. their recent return to profitability is modest and significantly dependent on provision write - backs rather than normal business profitability. the crisis continues to have serious legacy issues that cannot be resolved easily or painlessly. to mention just one example, ensuring that borrowers whose loans have been sold to unregulated firms do continue to obtain the consumer protections that they previously had is a concern which the bank has been to the fore in advocating. i am glad to see this reflected in legislation ( on which the bank has actively advised ) currently being enacted by the oireachtas. without detracting from the importance of appropriate pricing on the svr loans, i should not conclude without emphasising that delays and uncertainties surrounding the resolution of non - performing loans remains a much more acute problem. the latter problem is of course one which we have discussed in this committee repeatedly and on which progress remains damagingly slow. also, they are required by the terms of the business plans which they agreed in order to receive the sanction of the european commission dgcomp for the state aid they received, to reach a net interest margin of 2 per cent. given they are constrained by contracts on the trackers, there is only a limited range of options for achieving this. bis central bankers ’ speeches

gabriel makhlouf : remarks on the occasion of the publication of “ love you ” remarks by mr gabriel makhlouf, governor of the central bank of ireland, on the occasion of the publication “ love you : public policy for intergenerational wellbeing ” by girol karacaoglu, 17 february 2021. * * * good morning and good evening. it ’ s a pleasure to join you at this book launch, and to congratulate the publishers and of course the author, my good friend girol karacaoglu. i ’ m particularly pleased to have been asked to say a few words on the background and context for the wellbeing work programme ; it ’ s been a good opportunity to reflect on that part of the journey that ’ s now about a decade old, although much older overall and in many ways still young. wellbeing has been a focus of economic policy for a very long time but i ’ ll take 2011, the year girol joined the treasury, as my starting point for today. i became treasury secretary earlier that year, a week after my predecessor – john whitehead – spoke at the publication of a treasury paper on the living standards framework saying, quite rightly, that work on wellbeing was not new but one of the aims of the paper was “ to provide some clarity around the ultimate aims of [ the treasury ’ s ] work ”. the framework may not have been new but i felt its time had come, for a number of reasons : economics was going through another intellectual turbulence, at least in the western world, triggered by the global financial crisis and reflecting an emerging recognition that traditional policy approaches were unlikely to be adequate to confront the complex challenges of the modern era, such as the impact of deep international interconnectedness, technological and climate change, along with growing social disconnection and lack of trust in established institutions ; for me it was noticeable that the emerging recognition of the need for different policy approaches was not reflected in the dominant public policy narrative in new zealand at the time. commentators and policy practitioners appeared to be trapped in a frame of reference that seemed to me at best to be outdated ; apart from the treasury ’ s 2011 paper, joe stiglitz, amartya sen and jean - paul fitoussi ’ s 2009 report had helped shape my thinking, as had the australian treasury ’ s own wellbeing framework ( and i recall david gruen coming to wellington in 2011 to talk about their work