Tuesday, 25 June 2013

Questions (210)

Pearse Doherty

Question:

210. Deputy Pearse Doherty asked the Minister for Finance the person who will conduct the stress testing of Irish banks to begin at the end of this year and conclude in the first half of 2014. [30479/13]

View answer

Written answers (Question to Finance)

The Central Bank of Ireland is the supervisory body responsible for initiating regulatory led stress tests (such as PCAR). In the last PCAR, BlackRock Solutions provided independent loan loss forecasts as an input to PCAR. In addition, Barclays Capital provided input on PLAR and de-leveraging. Boston Consulting Group provided input on project management and oversight. The Central Bank of Ireland is making preparations, including building internal loan loss forecasting models, to conduct PCAR in line with the agreements stated in the Memorandum of Economic and Financial Polices (MEFP) and MoU with the IMF, EU and ECB. This includes conducting the exercise in line with the expected EU wide EBA exercise. The ECB, as part of the Single Supervisory Mechanism, is expected to also be part of this exercise; however, this is subject to finalisation of proposals on banking union at a European level.