The Irish Central Bank has announced the appointment of three expert external advisers to assist in the execution of the Prudential Capital Assessment Review (PCAR) and the Prudential Liquidity Assessment Review (PLAR) in 2011, both aimed at improving the resilience of the Irish banking sector.
The following firms have been appointed:
The appointment of the three firms is as a result of the Central Bank's announcement in November of new minimum capital requirements on Allied Irish Banks, Bank of Ireland, Irish Life and Permanent (ILP) and EBS of 10.5% Core Tier 1, under its PCAR requirements. In addition, the Central Bank is requiring these banks to raise sufficient capital to achieve a capital ratio of at least 12% Core Tier 1 by February 28, 2011, in the case of AIB, BOI and EBS, and by May 31, 2011, in the case of ILP.
It was also announced that the Central Bank will perform a PLAR for Bank of Ireland, Allied Irish Banks, ILP and EBS in Q1 2011. The PLAR will set bank specific funding targets consistent with Basel III and other international measures of stable, high quality funding.
The following firms have been appointed:
- BlackRock Solutions will perform reviews of asset and data quality of those banks participating in the PCAR and PLAR;
- The Boston Consulting Group will provide project management resources for the Central Bank’s Financial Measures Implementation Project. It will also contribute advice for the PCAR and PLAR; and,
- Barclays Capital will provide advice on banking sector structure issues. It will also contribute advice on matters arising from the PCAR and PLAR.
The appointment of the three firms is as a result of the Central Bank's announcement in November of new minimum capital requirements on Allied Irish Banks, Bank of Ireland, Irish Life and Permanent (ILP) and EBS of 10.5% Core Tier 1, under its PCAR requirements. In addition, the Central Bank is requiring these banks to raise sufficient capital to achieve a capital ratio of at least 12% Core Tier 1 by February 28, 2011, in the case of AIB, BOI and EBS, and by May 31, 2011, in the case of ILP.
It was also announced that the Central Bank will perform a PLAR for Bank of Ireland, Allied Irish Banks, ILP and EBS in Q1 2011. The PLAR will set bank specific funding targets consistent with Basel III and other international measures of stable, high quality funding.
