Gerry Adams
Question:35 Deputy Gerry Adams asked the Minister for Finance the timeline for completion of the solvency stress tests of the banks; and if he will make a statement on the matter. [5393/11]
View answerWednesday, 23 March 2011
Questions (36)
Written answers
The Prudential Capital Assessment Review (PCAR) and Prudential Liquidity Assessment Review (PLAR) for AIB, Bank of Ireland, Irish Life and Permanent, and EBS Building Society will be completed by the Central Bank of Ireland by the end of March and form part of the economic and financial policies to be implemented during the period of the external programme to end of 2013. The PCAR includes stress tests based on adverse macro economic scenarios to establish the capital needs of banks over the next three years. Work is progressing to schedule and in agreement with the external authorities.
The PLAR will set banks specific funding targets consistent with Basel III and other international measures of stable, high quality funding. The PLAR will outline measures to be implemented with a view to steadily deleveraging the banking system and reducing the bank's reliance on short term funding.