Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

First, one would need to distinguish between capital requirements and provisioning. Provisioning against bad debt was what arose from the asset quality review. It was clearly stated by the bank that arising from the asset quality review, no extra capital was required. Obviously, they are interrelated because to make the extra provisioning, a bank draws down on the store of core tier 1 capital. Therefore, the core tier 1 capital ratios have been reduced in the banks but they are still well above the minimum required.

Second, much of the material we are talking about is confidential and commercially sensitive. The Central Bank is independent and it has a relationship with the banks it regulates. The Central Bank deemed it to be appropriate not to publish the findings. Of course, it is up to the banks to publish what they are doing in respect of the additional provisioning required. The Bank of Ireland did so immediately because it had obligations, as a result of the preference share transaction we were conducting with it, to fully inform potential purchasers of the preference shares and of the new situation. It would comply with normal market guidelines to do so. That is why Bank of Ireland came out in greater detail. The other two were not involved in any similar transaction at the time and they are doing what would be normal. They will put the extra provisioning they may or will make into their annual return and annual report for the end of 2013. They will give a good deal of information as well, but they will do it in accordance with their timetables for announcing information about their balance sheets, that is, in the return for the year.

Deputy McGrath's first question was on the asset quality review and whether it will have to be repeated. I imagine it will have to be updated. The asset quality review was for 1 June 2013. Since the stress tests will be in October and November 2014, the asset quality review will be somewhat dated by then. I would prefer if there was an asset quality review, and it was the intention of the European Central bank to have this throughout Europe for 31 December 2013. They may update the June reviews to see what would happen. Obviously, there are downsides to that but there are certain advantages as well since loans supported by property related collateral would have enhanced in value between June and December.

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