Blackrock to assist on bank review

BANK STRESS TESTS:THE CENTRAL Bank of Ireland has once more engaged the services of Blackrock Solutions to assist in its forthcoming Prudential Capital Assessment Review. The custom risk analytics and stress testing advisory previously advised on the Central Bank's 2011 review.B

This year’s review will be conducted on AIB, Bank of Ireland and Irish Life Permanent, and will involve a bottom-up review of credit quality within the banks’ loan portfolios and credit loss forecasts under different stress scenarios.

It is expected to be completed by the end of the third quarter. The review tests had previously been pencilled in for March, before being deferred until later in the year.

Last March’s review led to substantial restructurings in the banking market, including the merger of AIB with EBS, and the proposed sale of Irish Life & Permanent’s life and pensions business, Irish Life, which has yet to take place.

Blackrock was appointed following an official tender process by the Central Bank.