Banks ‘look firm’ ahead of stress tests

Ireland, home of the euro region’s worst banking crisis four years ago, is relaxed about the latest examination of its financial companies.

Irish banks needed to raise €24bn when last probed by the nation’s central bank three years ago. Now, only the smallest surviving bailed-out lender, Permanent TSB Group Holdings, faces a capital shortfall after a European assessment this month, Finance Minister Michael Noonan signalled on October 14.

“Permanent TSB is the most vulnerable of the Irish banks”, said Emmet Gaffney, an analyst at Investec Plc in Dublin. “Even in an extremely bearish scenario, I can’t see a capital need of more than €700m.”