Irish banks have capital to deal with mortgage losses-cbank

DUBLIN Tue Jan 29, 2013 6:52am EST

DUBLIN Jan 29 (Reuters) - Ireland's banks must do more to deal with mortgage arrears, but they are well enough capitalised to deal with potential losses from the sector, the Irish central bank's chief economist said on Tuesday.

Irish mortgage arrears have risen to record levels, with one in six home loans not being fully repaid, as one of the biggest property bubbles in Europe unwinds.

"Much more will be needed to address mortgage arrears," Lars Frisell told journalists at a briefing in Dublin. But he said the banks should have enough capital to deal with the arrears "even if it implies capital losses."