Shane Ross (Dublin South, Independent)
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Question 42: To ask the Minister for Finance if he will confirm that all amendments to methodologies and changes to formulas applied by the Central Bank of Ireland during the stress testing process were fully disclosed to and approved by the peer review team appointed by the European Banking Authoroity; and if he will make a statement on the matter. [38796/11]

Shane Ross (Dublin South, Independent)
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Question 43: To ask the Minister for Finance if he will confirm that the only way in which the methodology applied by the Central Bank of Ireland to the Irish banks in the July 2011 stress tests differed to that prescribed to other European banks participating in the exercise was to take account of the losses forecast by BlackRock; and if he will make a statement on the matter. [38797/11]

Shane Ross (Dublin South, Independent)
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Question 44: To ask the Minister for Finance if the BlackRock forecasts were the only criteria upon which amendments were made to methodologies applied in the stress tests of July 2011; if he will confirm in which other respects amendments were made; and if he will make a statement on the matter. [38798/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 42 to 44, inclusive, together.

In relation to the first question above (ref: 38796/11), the Deputy will note that this matter was addressed in my reply to his previous parliamentary question on the subject (ref: 35901/11 of 22 November 2011).

With reference to the remaining two questions (refs: 38797/11 & 38798/11), I am advised by the Central Bank of Ireland, that the European Banking Authority applied the following key differences in methodology to the Irish banks relative to their European peers that participated in the 2011 EU-wide bank solvency stress test: · Loan loss forecasts :

The BlackRock Solutions output were used for loan loss forecasts as opposed to the predefined methodology. This resulted in significantly higher estimated stress case losses for Irish banks relative to their European counterparts. · Deleveraging:

The estimated impact of losses resulting from asset disposal activities scheduled to occur within the stress testing horizon were taken into account. This resulted in significantly higher estimated losses for Irish banks relative to their European counterparts. Deleveraging also resulted in a reduction of future estimated Risk Weighted Assets, and consequently future estimated regulatory capital, over the time horizon of the test, which was not allowed for other participating banks. · Funding:

Irish, Greek and Portuguese banks were issued with separate cost of funds instructions to account for the impact of the sovereign spreads and external support programmes.