The Irish Banking Federation (IBF) welcomes the clarity that publication of the latest stress test results brings to the guaranteed banks’ recapitalisation requirements. Given the detail, extensiveness and above all the rigour of these particular tests – allowing as they do for a worst case scenario – the recapitalisation measures arising from the results represent a watershed in the process of restoring confidence to the country’s domestic banking system.
The capital levels of the guaranteed banks will be well in excess of the 10.5% (Core Tier 1) that is the internationally-accepted target – by a multiple of two and more in some cases. With the increased confidence that this should bring, these banks will be well positioned to meet the credit demand from both business and personal customers as the economy begins to grow again.
IBF is committed to working with Government, the regulatory authorities and other key stakeholders to rebuild the domestic banking sector and in so doing play a critical role in rebuilding the economy.
Note: Irish Banking Federation (IBF) is the leading representative body for the banking and financial services sector in Ireland, representing over 70 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.