Of critical importance during 2010 and 2011 was ensuring that the banks were adequately capitalised, impairments were recognised, and adequately provided for. The work involved an assessment of asset quality, and stress testing the banks’ balance sheets. An important milestone was the work conducted by the Central Bank of Ireland during the Financial Measures Programme (FMP).
Under the FMP, a balance sheet assessment and stress test exercise was completed in 2011 and resulted in a total capitalisation requirement of € for the going-concern banks.