The latest banking stress tests have not thrown up any fresh capital requirements for Anglo Irish Bank or Irish Nationwide Building Society beyond the €34.7 billion already pumped into the two institutions.
The two banks were exempt from the previous stress-testing round in March which revealed that a further €24 billion would be required to recapitalise the four main banks, bringing the total bill to €70 billion.
In its latest review BlackRock Solutions, the US financial specialist employed by the Central Bank to conduct the stress tests, has found that previous loan loss forecasts for Irish Nationwide remain “robust”, while those for Anglo are still “reasonable”.
Last September, the Government injected additional capital of €6.4 billion into Anglo, and €2.7billion into Irish Nationwide, bringing the total amount the two banks have received from the State since 2009 to €29.3 billion and €5.4 billion respectively.
“Since these capital injections were made on the basis of loss estimates that have been found to be reasonable by BlackRock this analysis does not indicate that an additional capital requirement is required,” the Central Bank said today.
Anglo and Irish Nationwide were not included in the March stress tests as they are both being wound down. The two institutions are due to merge into a single State-owned banking group this summer. Earlier this year, Irish Nationwide’s deposits were transferred to Permanent TSB as part of its wind-down.
Results for Anglo in March showed the bank lost €17.7 billion in 2010, mainly due to losses incurred on loans transferred to Nama and impairment costs.
