THE CENTRAL Bank is to meet the chief executives of AIB, Bank of Ireland, EBS and Irish Life & Permanent later this week to discuss the draft findings of its stress tests on the banks.
The stress tests on the banks’ capital and liquidity positions has reached its final stages ahead of next week’s announcements on the amount of capital that must be raised at each financial institution.
The Central Bank has briefed the Government’s economic council – consisting of Taoiseach Enda Kenny, Tánaiste Eamon Gilmore, Minister for Finance Michael Noonan and Minister for Public Expenditure Brendan Howlin – of the measures the Government will need to take in order to shore up the capital position of the banks.
However, the Cabinet will not be informed in advance of the Central Bank’s announcements, which are scheduled for Thursday, March 31st.
Each of the four financial institutions will also find out on this date the final amount that must be raised and the deadline for meeting the capital requirements under the Central Bank’s Prudential Capital Assessment Review (PCAR).
Speaking in Brussels yesterday, Mr Noonan said bank bailout costs resulting from the upcoming stress test findings would be “very high” – in excess of €10 billion – but were unlikely “to be anything like the extravagant figures” discussed.
Separately, the European Banking Authority has begun its annual stress tests of banks across Europe, with the results expected to be published in June.
