Stress Tests - 2016 Redux … c0c26b3c60

Can someone please help to explain a few things here?

  1. Where does the bank formerly known as Anglo fit into this list?
  2. Where does PTSB fit into the list?
  3. What about the other 3 disasters that were bailed out?

Are there others that I should be worried about?
Like Ulster (which I trade with)?

Thanks for that Mantissa.

But where is Permanent TSB or Irish Permanent or whatever it trades as these days? How come I don’t see it?

Mmmm, now I have a good guess, it’s because this is a list of banks that trade in the UK?

It wasn’t in the tests.

Thanks grumpy.

That is surprising to me given that Permanent has a long history of being a large scale mortgage provider in the Irish Market and probably is very much saddled with a lot of properties with poor repayments.

I don’t know why it wasn’t included given its exposure to property and the property bubble that was co-related to the crisis that we are still in.

What it shows is that we still just a “small open economy” and, when things go bad we be fked.

We are building our castles on sand again.

I was lead to believe that AIB was the best capitalised bank out there. :angry:

The stress tests cover the top 51 banks in EZone.

For example none of the banks in Portugal or Greece are included.

Like most things the devil is in the detail :slight_smile:

Compare the stresses applied between the German and Irish banks - beware the politics

Ironically enough the Irish banks have more potential for retained earnings to contribute to capital over the next three years.

QE is killling margins in most (ie, somewhat competitive) markets in Europe. Not so in Ireland where AIB reported a net interest margin of over 2% recently.

Does that effectively amount to a continued stealth bail-out of the Irish banks, funded by citizens (i.e. those borrowing / saving / using banks here) via above-normal profits?
Why aren’t other overseas banks moving into the market and eating the Irish banks’ lunch?

Because mortgage lending if effectively unsecured lending in this jurisdiction?

Are the banks still losing money on every tracker ?

that’d do it probably.
Meanwhile the local banks know that they’ll be taken care of if it goes wrong, one way or another and the customers are treated like livestock for the slaughter.
(yes I’m over-reaching, but still)

Yes, they’re effectively on life support. That’s the first pillar of Noonan’s strategy: slowly wean the banks off high margins whilst keeping prices high, talk up the economy, hope to offload AIB and PTSB before the next crash (when shareholders can take another hit before depositors).

That’s the second pillar. Suppress repos and keep the Irish market looking unattractive. Possibly also influence issuing of new licences via the CB, although he has no direct control over that.

The whole system is being kept deliberately gridlocked.

Oh oh

Irish banks ‘adequately capitalised’, says Central Bank governor … -1.2742510



Ah lighten up on the poor bloke. It’s an improvement on Neary’s “best capitalised banks in the world”.

In other words they’re adequately capitalised as long as nothing bad happens. Their capital is adequate until it isn’t. 8DD

I would argue the CB has been doing its best to stop the banks refucking themselves by the introduction of the Macroprudential rules. They are not doing enough to unfuck them with the CCMA etc however

If the German or Italian banks were asked to undergo similar stresses to those applied to the Irish banks they would have been classified as insolvent - again the devil is in the detail.

But hey who needs the detail :slight_smile: