Ratings agency predicts Irish banks will pass next set of stress tests

The Irish banks are unlikely to need new capital following the next stress tests, but they still face significant risks and challenges in returning to profitability, according to a report by the ratings agency, Fitch.

“Although the Irish banks still appear broadly on track to meet the assumptions behind the 2011 stress test, these were framed on a Basel II basis,” Fitch said.

Since then capital expectations of market participants have crept steadily upwards, in terms of both quantity and quality.