Tuesday, 2 July 2013

Questions (131)

Brendan Smith

Question:

131. Deputy Brendan Smith asked the Minister for Finance the reason bank stress tests will not take place prior to the planned end of Ireland's EU-IMF programme; and if he will make a statement on the matter. [31926/13]

View answer

Written answers (Question to Finance)

The original timeline for Ireland’s next stress test under the Troika programme, was linked to the EU wide EBA stress test timeline, and has changed in light of the evolving calendar for the next EU-wide bank diagnostic exercises in the lead-up to the Single Supervisory Mechanism (SSM). The intention is to ensure that appropriate preparations are made early so that the Irish banks are in the strongest possible position when the ECB fully assumes its supervisory role under the SSM. This is expected around mid-2014.

Consequently, the Irish authorities, in consultation with the troika, will this year conduct a series of diagnostics to provide greater clarity regarding the underlying quality of banks' balance sheets. A key element will be a comprehensive Balance Sheet Assessment to be finalised by end-November 2013. The various preparatory supervisory steps that the authorities are undertaking will ensure that a stress test of the Irish banking sector will be conducted ahead of, but in close proximity to, the EU-wide exercise in 2014.