Dáil Éireann Debate, Wednesday - 20 September 2017
149. Deputy Michael McGrath asked the Minister for Finance the amount of moneys used to recapitalise Irish banks specifically for the purpose of dealing with owner-occupier and buy-to-let mortgage debt; and if he will make a statement on the matter. [39107/17]
View answerIn early 2011, as part of the agreement with the External Partners, the Central Bank commissioned a detailed evaluation of the possible loan losses that would be incurred by banks in a severe stress scenario. All the loan books were examined, including the residential mortgage books in Ireland and the UK. The results of this work were key inputs into the capital requirements identified in PCAR 2011, which totalled €24bn. Total losses modeled under the stress scenario on Irish mortgages were €9bn. This comprised €2bn at Bank of Ireland, €4.4bn at AIB/EBS and €2.6bn at Permanent TSB.
A host of other inputs including forecasts for profits and bank balance sheets contributed to the capital requirement set for each institution. As such it is not possible to break down the capital requirement determined for each institution into individual business lines.
