Dáil Éireann Debate, Tuesday - 23 April 2013
185. Deputy Pearse Doherty asked the Minister for Finance further to confirmation that the Central Bank of Ireland has engaged BlackRock International to provide the stress-testing of Irish banks in 2013, if he will outline the principal acquisitions of assets in Ireland by BlackRock since the last stress-testing in January-March 2011. [18439/13]
View answer186. Deputy Pearse Doherty asked the Minister for Finance if he will outline the tendering process engaged in by the Central Bank of Ireland before the appointment of BlackRock International to provide services in relation to the stress-testing of Irish banks in 2013. [18440/13]
View answer187. Deputy Pearse Doherty asked the Minister for Finance if he will confirm the estimated cost of the stress-testing of Irish banks in 2013; and if he will confirm the component of this cost that relates to non-State entities. [18441/13]
View answerI propose to take Questions Nos. 185 to 187, inclusive, together.
The Central Bank of Ireland has supplied my Department with the following information.
In line with EU Procurement Directives, BlackRock were appointed in 2012, following a tender process to establish a framework agreement consisting of 4 lots, for the provision of services under the Central Bank of Ireland’s (CBI) Financial Measures Programme (FMP) including the Prudential Capital Assessment Review (PCAR). On this basis, a number of providers, including BlackRock, were admitted to the framework agreement. The most economic advantageous tender per lot (the company who scored the highest) won the immediate piece of work. The award notice was published on www.etenders.gov.ie/.
As part of the FMP, the CBI is currently developing asset class loan loss forecast models which can be used as part of PCAR. As part of these services, these independent models will be validated by BlackRock (BRS). In addition, BRS are developing the Commercial Real Estate (CRE) asset class model for the CBI. It is therefore expected that this engagement will be completed by end-June 2013. The Framework Agreement is valid for four years. For any future FMP or PCAR requirements throughout the duration of the framework agreement, each firm who has been successful in the particular lot will be invited to participate in a mini-competition if external providers are required. It has not yet been decided whether third party support is required or needed for any stress testing that may be conducted in 2013. Therefore it is not possible to provide an estimated cost of stress-testing the Irish banks for 2013.
