Departmental Expenditure

Dáil Éireann Debate, Wednesday - 15 January 2014

Wednesday, 15 January 2014

Questions (119)

Michael McGrath

Question:

119. Deputy Michael McGrath asked the Minister for Finance the total cost incurred by his Department as part of the recent balance sheet assessments of the banks, which advisers were engaged as part of the process; the amount each of the advisers were paid; the person who will incur the cost of the balance sheet assessment; if a similar exercise will have to be carried out again as part of the euro area stress tests in 2014; and if he will make a statement on the matter. [55543/13]

Written answers

Minister for Finance

The Department of Finance did not incur any costs in relation to the recent Balance Sheet Assessments (BSA).

As the Deputy will be aware, the Central Bank (CBI) undertook the BSA exercise. Boston Consulting Group (BCG) was contracted by the CBI as independent assessors and to provide project management resources. Ernst & Young was contracted to conduct the loan file and impairment model reviews of AIB and PTSB. KPMG was contracted for the same work in Bank of Ireland.

The CBI has informed me that the BSA was intended to meet the requirements of the ECB assessment, however this will not be known until the SSM BSA process begins (expected Q1 2014), following the finalisation of the ECB comprehensive assessment methodology, as announced on 23 October.

Third party costs for the BSA have yet to be finalised. The CBI is responsible for paying for these services as the contractee, however the approach (or otherwise) to apportioning same to the participating banks has yet to be finalised or decided.