First phase of stress tests set for later this year

The bank stress tests will be held in two phases with an asset quality review scheduled for later this year followed by stress tests in the first half of next year, the deputy governor of the Central Bank, Matthew Elderfield, said.

There has been confusion about the timing of the stress tests ever since Finance Minister Michael Noonan said they would coincide with EU stress tests which will take place next year. In its last economic review, the troika said it wanted the tests completed before the country exited the bailout programme in November.

Appearing before the Public Accounts Committee (PAC), Mr Elderfield confirmed the tests will be held over two stages. “It is very important the stress tests are aligned with the EBA [European Banking Authority] stress tests and that the same methodology is used.”