Brian Hayes MEP today said that Permanent TSB could face another round of stress testing from the ECB’s Single Supervisory Mechanism (SSM) in the first quarter of 2016, following comments made by Daniele Nouy, Chair of the SSM, at a hearing in the European Parliament today.
“Ms. Nouy explained to the Economic and Monetary Affairs Committee that Permanent TSB could be one of the banks to be stress tested next year. It is expected that 50-60 banks in the Eurozone will be subject to stress test in the first quarter of 2016. Ms. Nouy also commented that these stress tests should involve 70% of European banking assets; this means that Europe’s biggest banks will have to come under examination.
“It is welcome that PTSB, and indeed other Irish banks, could be subject to more stress testing. It is important that Irish banks get back to profitability but we need to ensure that banks which have encountered problems can cope in a stressed environment.
“The SSM has been in operation for one year and its activities have been crucial in monitoring the systemic risk of the Eurozone’s banking system. To prove its worth, the SSM has to continuously monitor banks such as PTSB and perform regular and thorough stress tests.
“PTSB has made significant efforts to resolve its capital shortfall of €850 million which was identified through SSM stress tests in 2014. With the Irish economy growing at the fastest rate in the EU, PTSB can take advantage of the positive conditions to attract more investors and new business.”
Brian Hayes MEP 