The Economist’s reflections on today’s announcements are to be found here.
The Economist on Ireland
- Post author By Philip Lane
- Post date September 30, 2010
- Categories In Banking Crisis
- Tags Irish banking crisis
- 2 Comments on The Economist on Ireland
Tag: Irish banking crisis
The Central Bank statement is below, while the detailed statement on Anglo-Irish is here and the detailed statement on capital requirements for Irish banks is here.
The Central Bank today (Thursday 30 September) published its assessment of the capital requirements resulting from the recently announced restructuring of Anglo Irish Bank.
In addition, the Central Bank has published the outcome of its review of the capital requirements of those Irish banks subject to the Prudential Capital Assessment Review (PCAR) exercise, in light of the estimated remaining haircuts to be applied by NAMA.
Anglo Irish Bank Restructuring
The Central Bank has assessed the injection of capital needed to meet minimum regulatory requirements under both a base, or central, scenario, taking account of expected losses, and under a severe hypothetical stress scenario.
This assessment has been applied to both the proposed Funding Bank and the Asset Recovery Bank that will be created. The total capital required for both institutions under the base, or expected loss, scenario is €29.3billion.
Under the stress scenario, in the event that unexpected additional losses are incurred, the Central Bank estimates that an additional €5 billion of capital could potentially be required.
This week’s edition of The Economist reports on the lrish banking crisis: you can read it here.
This report is available here.
You can download the report here.