Bernard Durkan (Kildare North, Fine Gael)
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Question 199: To ask the Minister for Finance the extent to which, in his view, the stress test carried out in the banking sector here and throughout Europe has been sufficiently robust to safeguard the durability of the sector in the future; and if he will make a statement on the matter. [18981/11]

Michael Noonan (Limerick City, Fine Gael)
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As I said in my Statement on Banking in March, the PCAR bank stress tests carried out by the Central Bank are certainly among the most thorough and demanding such tests ever performed in Ireland and or indeed anywhere. The detailed results methodology and assumptions underlying these stress tests have been published, emphasising Ireland's firm commitment for this critical exercise to be fully open and transparent. In specific terms I am satisfied on the basis of the results of the PCAR assessment carried out by the Central Bank which have been endorsed by the external authorities that the loan loss assumptions made reflects a high degree of conservatism and underpin the robustness and credibility of the exercise overall.

The Central Bank of Ireland has advised me that the EU-wide bank stress test process is still underway and is expected to be completed shortly. As regards the robustness of the stress test, the European Banking Authority is working with national banking supervisors and other European stakeholders, such as the European Commission, European Central Bank, and European Systemic Risk Board, to ensure there is consistent and conservative application of the stress test to all participating banks.