Simon Harris (Wicklow, Fine Gael)
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To ask the Minister for Finance if he has satisfied that the banks are utilising public funds which were given to them for the purpose of mortgage write down. [43206/12]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy will be aware, the Irish banks were required to raise €24.0bn in capital following the 2011 Prudential Capital Assessment Review (PCAR) in order to remain above a minimum capital target of 10.5% Core Tier 1 in the base scenario and 6% Core Tier 1 in the stress Scenario.

The Central Bank made its decision on required recapitalisation based on loan-loss projections along with further calculations concerning the prospective income, expenditure, and deleveraging plans of the banks as outlined in the 2011 Financial Measures Programme (FMP) Report.

In order to arrive at a stressed loan-loss estimate that was fully credible to the international markets, the Central Bank engaged BlackRock Solutions, a specialist in analysing potential loan losses under stressed conditions. However I must again reiterate that the stress test scenarios were designed to represent extreme but plausible events, but they were not forecasts.

In terms of mortgages, the Central Bank has informed me that the following projected losses for the period 2011-2013 were used for capital determination purposes:

In terms of troubled mortgage customers, the Central Bank is now engaging with all regulated mortgage lenders to ensure that each lender has appropriate strategies and plans to deal appropriately with all its customers experiencing mortgage difficulties. In addition, the protections of the Central Bank’s Code of Conduct on Mortgage Arrears will continue to be available to co-operating borrowers who are experiencing difficulty on their mortgage in respect of their principal private residence.