Gerald Nash
Ceist:34. Deputy Ged Nash asked the Minister for Finance if he sought the views of the Central Bank on a statement (details supplied); and if he will make a statement on the matter. [21078/21]
Amharc ar fhreagraThursday, 22 April 2021
Ceisteanna (34)
Freagraí scríofa
The Deputy will be aware that it is the responsibility of the Regulator to set the level of capital which each bank is required to hold. These capital levels are determined within the context of a robust EU regulatory framework which is designed to ensure a safe banking system that can support the economic needs of each member state.
One of the key inputs in this regard is historical loss experience and, as is well understood, Ireland’s experience during the Global Financial Crisis was amongst the worst in Europe. Accordingly, Irish banks are required to hold more capital than in other jurisdictions for the same asset classes.
Two recent research papers by the Department of Finance and the BPFI analysed this matter specifically in relation to the level of capital required to be held by Irish banks for residential mortgages relative to other European jurisdictions. Both of these papers were consistent in their summary of the relative position and the underlying reasons for this. These papers are publicly available on the Department of Finance and BPFI webites.