THE €30 million in fees being paid to consultants by the Central Bank for the stress tests on the banks will cover the analysis of loan losses at Anglo Irish Bank and Irish Nationwide Building Society.
A spokeswoman for the Central Bank confirmed that the final cost of the stress tests is expected to be about €30 million.
The fees are being paid to UK bank Barclays Capital, US asset manager BlackRock Solutions and the Boston Consulting Group.
Sub-contractors who carried out work at the banks are also sharing the €30 million in fees.
Accountant firm Deloitte carried out analysis of loans at AIB and EBS, while Ernst & Young assessed loans at Bank of Ireland, EBS and Irish Life & Permanent. Mazars carried out work at Bank of Ireland, AIB and ILP.
Law firm Arthur Cox reviewed collateral enforcement on loans and carried out legal analysis at AIB and ILP, while rival legal practice Matheson Ormsby Prentice carried out work at Bank of Ireland and EBS building society.
Texas-based consultants Situs reviewed commercial property loans at Bank of Ireland, while Clayton Euro Risk assessed residential mortgages across all portfolios. The Central Bank spokesman declined to give a breakdown of fees paid to each of the firms.
BlackRock’s assessment of the loan loss methodology used to assess the €29.3 billion estimate of the cost of Anglo Irish Bank is expected to be published shortly.
The Central Bank will also release details later this month on loan loss estimates at Irish Nationwide, which is receiving €5.4 billion in State funds. The lender is due to report its 2010 results next week showing heavy losses.
