Oireachtas Joint and Select Committees

Thursday, 28 May 2015

Committee of Inquiry into the Banking Crisis

Nexus Phase

Photo of Eoghan MurphyEoghan Murphy (Dublin South East, Fine Gael) | Oireachtas source

Well just ... if you could help me clarify, because there was two scenarios put to the banks to test for. Shock scenario one was the extreme scenario and had a number of variables, and one was a decline in house prices by 40%, in the extreme scenario. Shock scenario two was the weak scenario and it had the same variables at different levels but the decline in house prices in the weak scenario was still 40%. Why would that variable be constant amongst both the extreme and the weak shock scenarios for the banks?

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