Customer Questions & Answers

The Central Bank of Ireland today (31 March 2011) released the results of its Prudential Capital Assessment and Prudential Liquidity Assessment Reviews of AIB, Bank of Ireland, Irish Life & Permanent and EBS.

This was followed by a statement from the Irish Minister for Finance Michael Noonan. A full copy of this statement is available on


1. What does today’s Prudential Capital Assessment Requirement (PCAR) announcement and the restructuring plan mean?

Today’s PCAR announcement set out the capital requirements for various financial institutions to ensure they hold enough reserves to cover the potential losses indicated in the stress test findings.  These findings are not forecasts of what is likely to happen, they are contingency scenarios which anticipate the most extreme situations.

The Minister for Finance set out a restructuring programme for the banking sector which is designed to ensure the industry is the right size and structure to meet future needs.  It requires institutions to take actions which will ensure they meet those objectives. As part of this process AIB will be combined with The Educational Building Society (EBS). 

2. Why were these stress tests required?

International confidence in the Irish banking sector has remained low despite previous stress tests.  These new tests, the results of which were announced today, were the most onerous ever conducted on Irish banks and included highly adverse scenarios and assumptions designed to ensure that the sector can withstand the most extreme market conditions.

3. What does this mean for me as an AIB customer?

The significant amount of additional capital which is being injected into AIB is designed to definitively assure all stakeholders that we will continue to be a key part of the Irish banking sector.

We will have a capital base strong enough to enable us to provide long term support to our customers and play an active role in the recovery of the Irish economy.

The Government has also reiterated its commitment to the deposit guarantee so you can be assured that your deposits retain the same level of protection.

4. Do I need to take any action?

No.  Other than providing further reassurance of the safety and stability of your deposits and of AIB’s ability to continue to serve your needs, today’s announcement does not impact on your relationship with us.

5. Where can I find out more about this process?

Both the Central Bank of Ireland and The Department of Finance have produced some helpful questions and answers and they can be found at and and AIB’s announcement to the Stock Exchange can be found here.

6. What if I have any other questions I want to ask AIB?
If you have any further queries your usual branch contact or relationship manager will be very happy to help.


AIB is a registered business name of Allied Irish Banks, p.l.c.

Registered Office: Bankcentre, Ballsbridge, Dublin 4. Tel: + 353 16600311.

Registered in Ireland: Registered No. 24173.

Allied Irish Banks, p.l.c. is regulated by the Central Bank of Ireland.

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