Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I thank the Minister for his reply. Can the Minister confirm that the European Central Bank has accepted that the bank balance sheet review will form part of the stress tests that will take place later this year? In other words, does it accept that that box has been ticked and the balance sheets do not have to be reviewed again?

I am concerned that the Central Bank did not announce the results of the balance sheet review and that each of the banks made separate statements. As acknowledged by the Minister, varying levels of detail were provided by AIB, Permanent TSB and Bank of Ireland, which also took issue with the findings of the balance sheet review in terms of the amount of loan provisioning provided for on its balance sheet and stated there would be a need for further engagement with the Central Bank on this issue. This results in an element of uncertainty as we enter into a critical period in the context of the full stress tests this year by the European Central Bank. This uncertainty is regrettable and unnecessary. In my view, the Central Bank should have published the outcome of the balance sheet reviews.

The bottom line is that in the case of two of the banks, we own them fully and we have recapitalised them. In the case of Bank of Ireland, we are still a significant minority shareholder.

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