Bernard Durkan (Kildare North, Fine Gael)
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Question 76: To ask the Minister for Finance the discussions he has had with the various banking interests with a view to absolute determination of the fullest possible extent of their indebtedness with particular reference to the need to take the necessary steps to address the issues emerging and in particular the need to determine any heretofore undisclosed liabilities or assets within or outside this jurisdiction; and if he will make a statement on the matter. [34060/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Central Bank yesterday announced that it has advised the Irish banks that have been subject to Prudential Capital Assessment Review (PCAR) that the year-end deadline for meeting the PCAR standards remains in place despite recent developments in international capital standards. The Central Bank also advised the banks as to the capital treatment of any adverse development in NAMA haircuts since the PCAR calculations were initially conducted on 30 March.

Since the initial PCAR calculations on 30 March 2010, the completion of the first two tranches of NAMA loan transfers enabled the Agency to refine its estimates of the discounts on the remaining loans to be transferred to a high level of accuracy. This allowed the Financial Regulator to update his assessments of the capital position of all of the guaranteed institutions following the earlier PCAR and the EU-wide CEBS Stress Testing Exercise carried out in July. This has been achieved by the Financial Regulator working very closely with my officials, NAMA and the other relevant authorities, and with the participating institutions to establish as definitively as possible the level of capital required by them.

In my comprehensive banking statement earlier today, I set out with clarity and certainty the final costs to the State of repairing the banking system. Though significant, the costs are fully manageable in the context of the programme of fiscal restraint to which the Government is committed.