The core issue in reforming the Irish banking system is to ensure the banks are in a position to lend “and work is ongoing in that regard”, the Minister for Finance Brian Lenihan said today.
Addressing the American Chamber of Commerce Thanksgiving Lunch this afternoon Mr Lenihan said the financial crisis had proven "deeper and more protracted" than expected.
He said the major adjustment happening in house-building was depressing overall economic activity and was the "main factor in the increase in unemployment".
Ireland was fortunate in being "reasonably well-placed to deal with the challenges", not least because public debt is relatively low. He said the Government was focusing its policies to ensure the economy was well positioned to take advantage of any resumption in trend growth internationally.
One such measure were the changes to the research and development tax credit introduced in the budget, which will see the level of credit rise from 20 per cent to 25 per cent.
He said Ireland was now one of the ten largest investors in the US and Irish-owned companies employ over 80,000 people in 200 companies.