Irish banks conclude ECB stress tests talks
It is believed that the Irish banks have concluded their meetings with the ECB to discuss the comprehensive assessment of the banking system.
The heads of AIB, Bank of Ireland, Permanent TSB, Ulster Bank and Merrill Lynch’s Dublin operations were all in Frankfurt over the past few days and held individual meetings which lasted roughly three hours with ECB officials, according to people familiar with the situation.
The comprehensive assessment of the banking system consists of an asset quality review and stress tests, which will determine if banks are sufficiently well capitalised to withstand future losses.
The results of the comprehensive assessment will not be disclosed until the last weekend in October. The purpose of the meetings was to discuss the methodology used for each bank’s stress test and asset quality review.
If a bank is unhappy at how certain potential losses were calculated, then there will be a short period of consultation, said a source. They will also get a sense of how well they performed during the tests, but they will not receive any actual results.
If a bank fails the comprehensive assessment, then they will be expected to raise fresh capital to plug any shortfall. In the case of AIB and Permanent TSB, which are both state-owned, if they cannot raise capital from private investors, then the Government would have to stump up the funding.
None of the banks would comment as this process is subject to strict confidentiality rules.
“Any discussions at this stage are based on preliminary and partial information. No final results or information has been provided to the banks, so any information on potential outcomes of the comprehensive assessment at this stage is speculative and not based on final outcomes,” said the Irish Central Bank in a statement.
Under proposals for EU banking union, 85% of banks across the eurozone by value of assets will be supervised directly by the single supervisory mechanism. However, banks have to complete an intrusive health check before the SSM becomes operational.
The future of the banking system in the EU hinges on the credibility of this comprehensive assessment. Similar stress tests carried out in 2010 were seen as too soft.
Health Minister Leo Varadkar secures €500 million budget boost for battered department
“BUT WE HAVE FRAGILITIES, WE DON’T HAVE MONEY FOR EVERYTHING.” says minister varadkar.
Health Minister has been in crunch talks with the Department of Public Expenditure and Finance for weeks in a bid to fix the hole in his budget
Minister for Transport, Leo Varadkar pictured this evening at the removal of former Sunday Independent editor, Aengus Fanning at St. Joseph’s Church, Glasthule.
Health Minister Leo Varadkar has secured an extra €500million for his battered department, the Irish Daily Mirror has learned.
Mr Varadkar had been in crunch talks with the Department of Public Expenditure and Finance for weeks in a bid to fix the hole in his budget.
And speaking this morning, Brendan Howlin said the Economic Management Council has signed off on the final details of the package.
The Public Expenditure Minister said he expected this mornings Cabinet meeting to be the last one before the announcement on Tuesday.
Mr Howlin said there would not be no further cuts but insisted it wasn’t time to start blowing cash again.
Mr Varadkar has promised in return to bring next year’s Budget in line and get the free GP care for under-sixes over the line.
The Economic Management Council met yesterday before the final Cabinet meeting today to sign off on the final details of the package. Meanwhile, Finance Minister Michael Noonan briefed his Fine Gael backbenchers yesterday and told them the tax cuts had been signed off on.
As revealed in this paper, he is expected to raise the income band by up to €2,000 and increase the Universal Social Charge to take tens of thousands out of the net.
Taoiseach Enda Kenny said the Budget would not be a “blank cheque” but would show the economic sacrifices people made, have paid off. He said a stimulus package would be unveiled next week with a focus on social housing.
Mr Kenny said: “We’re now deemed to be one of the fastest-growing economies in Europe.
“Minister Noonan has pointed out we should be able to sustain this competent management of the finances over the next number of years, which will be great for our country, with a great deal of job opportunities being created.
New plans to create 93,000 start-ups in Ireland as economy improves
MINISTER FOR JOBS, ENTERPRISE AND INNOVATION, RICHARD BRUTON
Women, young people and immigrants will be targeted in a new plan aimed at increasing the number of new businesses being set up.
Jobs Minister Richard Bruton’s proposals aim to create an extra 93,000 jobs in start-up companies over the next five years.
The entrepreneurship plan will include distinct measures to promote female entrepreneurship, including:
l promotion of female role models;
l targeted events and awards;
l support for female entrepreneur networks;
l promotion of a dedicated area on corporate websites.
The plan also includes education programmes to promote entrepreneurship as a career option for young people, in schools, third level, fourth level and apprenticeships.
It also contains measures to promote entrepreneurship as an option among the young unemployed, including micro-loans and mentoring.
Central Bank research shows start-up companies in the first five years of existence account for two-thirds of all new jobs created in the country.
The new plan follows on from and draws on the report of the expert Forum on Entrepreneurship, chaired by successful businessman Sean O’Sullivan and published earlier this year.
It says doubling the amount of funds available to start-ups in Ireland from angel investment is key.
Angel investors are successful entrepreneurs who invest private funds in start-up businesses.
Analysis of successful start-up areas around the world, in places such as Silicon Valley, in California, point to the existence of angel networks.
A total of €90m is currently available in formal angel networks in Ireland.
But the plan also sets out a range of proposals for the taxation system to boost the prospects for start-ups, including changes to:
l share-based remuneration in private companies;
l seed capital scheme and employment and investment incentive;
l capital gains tax;
l income tax.
However, decisions on these changes will have to be made by Finance Minister Michael Noonan in Budget 2015 and into the future.
To encourage an entrepreneurship culture, Mr Bruton’s department wants to see new business competitions on TV.
The producer of Dragon’s Den and Celebrity Masterchef, Shinawil, is in discussions with RTE about recording and broadcasting a TV series which would track the finalists and broadcast the live final of Ireland’s Best Young Entrepreneur competition.
The competition attracted 1,000 applications and is aimed at promoting entrepreneurship as a career option for young people.
The programme is being pitched as a cross between The Voice and Dragon’s Den.
The key target in the new plan is to double the number of jobs coming from start-ups over the next five years, by increasing the number of start-ups by 25%, the survival rate by 25%, and the capacity to grow to scale by 25%.
Number of mortgages in arrears declines in August
New Department of Finance figures also show a rise in number of split mortgages
The Department of Finances figures are compiled from the six main banks operating in the State which between them represent about 90 per cent of the mortgage market here
The number of mortgage accounts in arrears for 90 days for more fell by 2% to 69,865 at the end of August, according to new figures published by the Department of Finance.
Total mortgage accounts in arrears also declined when compared to July, falling by 2 per cent or 2,089 to 100,132, the data show.
The total number of mortgage accounts in Ireland totalled 693,832 at the end of August, of which 593,700 were not in arrears.
At the end of August, the number of permanent mortgage restructures rose by 3,800 or 5% to 79,405.
However, almost 50,000 of the mortgages in arrears for 90 days or more have not yet been restructured. This is equivalent to 71% of all such mortgages in arrears. In addition, a further 5,237 accounts, equivalent to 7 per cent of such mortgages had been temporarily restrucutred.
During the month of August, the number of split mortgages – where part of the mortgage is put aside for a fixed term – also rose, up 6 6% to 16,198. This represents an increase of 950 on the previous month.
The Department of Finance’s figures are compiled from the six main banks operating in the State, which between them represent about 90% of the mortgage market here.
Comet is going to pass Mars closer than the Moon is to Earth
It might sounds like 87,000 miles is a long-distance trip but in space terms it’s a near miss.
Comet C/2013 A1 Siding Spring will make a close flyby of Mars on Sunday and at just 87,000 miles apart the comet will be less than half the distance between the Moon and Earth.
It’s so close that Nasa kit currently in orbit around Mars is being moved behind the Red Planet in a ‘duck and cover’ procedure to shield them from any comet debris.
Siding Spring’s nucleus will come closest to Mars on Sunday evening, when it hurtles past at about 126,000 mph.
It will be less than one-tenth the distance any known comet flyby of Earth and the event will be keenly-observed as an “unprecedented opportunity for researchers to gather data on both the comet and its effect on the Martian atmosphere”.
“This is a cosmic science gift that could potentially keep on giving, and the agency’s diverse science missions will be in full receive mode,” said John Grunsfeld, astronaut and associate administrator for Nasa’s Science Mission Directorate in Washington.
“This particular comet has never before entered the inner solar system, so it will provide a fresh source of clues to our solar system’s earliest days.”
Scientists already know that Siding Spring came from the Oort Cloud – a giant swarm of icy objects believed to be material left over from the formation of the solar system.
A Nasa spokesman added: “Siding Spring will be the first comet from the Oort Cloud to be studied up close by spacecraft, giving scientists an invaluable opportunity to learn more about the materials, including water and carbon compounds, that existed during the formation of the solar system 4.6 billion years ago.”
In preparation for the comet’s flyby Nasa has manoeuvred its Mars Odyssey orbiter, Mars Reconnaissance Orbiter (MRO), and the Mars Atmosphere and Volatile EvolutioN (MAVEN), in order to reduce the risk of impact with high-velocity dust particles coming off the comet.
Mars rovers Opportunity and Curiosity will be protected from comet dust by the Mars atmosphere, should any reach the planet. Both rovers are scheduled to make observations of the comet.
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