The Central Bank has revised upwards its prediction for growth in the Irish economy this year.
It expects GDP to expand by 3.7%, a 0.3% increase on previous forecasts.
Estimated GNP growth is put at 3.3%, a jump of 0.2%.
The improved outlook is down to a number of factors, including export growth, the improving labour market and investment growth.
However the Bank's economists are warning that high levels of public and private debt and other vulnerabilities are still a 'headwind' against a strong recovery in consumption.
The banks says that "policy needs to continue to build on the achievements of recent years and focus on strengthening resilience" to achieve a sustainable return to steady growth.
In terms of the general banking sector, Central Bank explains that "while more remains to be done, progress is being made in dealing with the resolution of impaired loans and the Central Bank will continue to work to ensure that banks and mortgage borrowers in arrears move to conclude durable solutions."
