• But at a slower pace
• Banks have problems selling problematic loans due to gap between book values and market prices (NS Sherlock)
• BOI has new guidelines to urge lenders to use uptodate values on expected credit losses
• Banks may cut back further on sovereign bond holdings in next few months after net sales of €10bn in Jul-Sept
• Further risk control tightening needed by central counterparties in repo markets may encourage bilateral deals