Officials in Ireland are considering the introduction of a second asset-management agency in order to pare down the country’s banking system, and reduce the sector’s dependence on European funding, according to Bloomberg. The National Asset Management Agency (NAMA) was established in 2009, and has helped Irish banks purge €71 billion in high-risk commercial real-estate loans. A second agency could potentially reduce lenders’ reliance on funding from the European Central Bank.
A spokeswoman for Ireland’s central bank, Jill Forde, said, “A number of options are under consideration,” and added that a decision would be made in the first quarter of the year. The €85 billion bailout package Ireland accepted from the European Union and International Monetary Fund stipulated that the central bank start “steadily deleveraging” of the country’s banking system. Forde said that other possibilities to achieving that goal include asset sales, restructuring, and extending the country’s bad bank, although analysts warn, “Downsizing is easier said than done.”