Bernard Durkan (Kildare North, Fine Gael)
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Question 316: To ask the Minister for Finance the total financial commitment by him to date of the support to each of the financial institutions; the degree to which he has quantified ongoing support for the future; when he expects that each financial institution will be in a position to proceed without assistance; and if he will make a statement on the matter. [1670/11]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The following table sets out the amount of capital injected by the State into the Irish Banking System to date. The Central Bank has set out the further capital that will be required by AIB, BOI and EBS in order for them to meet a 12% core tier 1 ratio by the end of February 2011 as agreed in the Programme for Financial Support with the IMF, EU and the ECB.

These Central Bank estimates take account of all elements of the banks' loan books, including the mortgage loan books. It has taken a realistic view of the likely losses to mortgage lenders. Indeed, the loss rates that have been used in both the base and stress case scenarios are in excess of the latest official figures released by the Central Bank. Furthermore, the detailed review undertaken by the external authorities of the financial status of the Irish banks and, in particular, of the Central Bank's PCAR exercise was an important part of the technical discussions underpinning the negotiated package of assistance with the IMF and our European partners. The Governor of the Central Bank recently confirmed that the external experts had found no fault with the methodology used for the PCAR stress test earlier this year. As part of the agreement with the EC, IMF and EU the State has agreed to adopt deleveraging measures and to implement restructuring of the banking sector. To this end, a Prudential Liquidity Assessment Review or "PLAR" will establish target funding ratios for each of the banks, identify non core assets and set an adjustment path to these targets based on specified non public annual benchmarks.

As to further funding being required, the State in the case of AIB and EBS remains committed to meeting their remaining capital requirements to the extent that they cannot be met from other sources.

Bank of Ireland has raised some €700m of their capital requirement through an LME exercise in December and intends to seek to generate the remaining required capital through a combination of internal capital management initiatives, support from existing shareholders and other capital markets sources. On 10 January 2011 Bank of Ireland announced the completion of the sale of Bank of Ireland Asset Management to State Street Global Advisors.