Finian McGrath
Question:233. Deputy Finian McGrath asked the Minister for Finance the amount of funding each bank has received for the specific purpose of dealing with distressed mortgage holders. [38534/13]
View answerWednesday, 18 September 2013
Questions (233)
Written answers
In early 2011, as part of the agreement with the External Partners, the Central Bank commissioned a detailed and data-driven evaluation of the possible loan losses that would be incurred by the banks in a severe, but not utterly implausible, stress scenario. All the loan books were examined, including the residential mortgage books in Ireland and the UK, taking into account projections in arrears and house prices etc. The results of this work were key inputs into the capital requirements identified in PCAR 2011, which totalled €24 billion. Total losses modelled under the stress scenario on Irish mortgages were €9 billion. This comprised €2 billion at BOI, €4.4 billion at AIB/EBS and €2.6 billion at PTSB. However, in the analysis there was never any specific provision made for the purpose of providing debt relief for distressed mortgages. Further details can be found at
http://www.centralbank.ie/regulation/industry-sectors/credit-institutions/Documents/The%20Financial%20Measures%20Programme%20Report.pdf.