AIB and Bank of Ireland set to fare better in bank stress tests

Cantillon: EBA likely to be impressed by lowering of non-performing loans since 2016

Bank stress tests: authorities are assessing for a 19.8 per cent fall in Irish house prices under a worst-case scenario, compared to 22.3 per cent priced in two years ago.

Bank stress tests: authorities are assessing for a 19.8 per cent fall in Irish house prices under a worst-case scenario, compared to 22.3 per cent priced in two years ago.

AIB and Bank of Ireland, which were among the worst performers in European stress tests in 2016, are on track to fare better this year as they continue to lower their levels of troubled loans, according to analysts.

This time round, authorities are assessing for a 19.8 per cent fall in Irish house prices under a worst-case scenario, compared to 22.3 per cent priced in under the stress tests two years ago. And they are looking at a 21.8 per cent slump in Irish commercial real-estate valuations, compared to 28.4 per cent in 2016.

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