* Move designed to appease EU/IMF concerns
* Lenders want banks checked before bailout exit
DUBLIN, June 13 Ireland has agreed to a detailed
review of its troubled banks' loan books this year to placate
its international lenders and will have its stress tests before
a Europe-wide exercise in 2014.
The move is designed to appease concerns of the European
Union and International Monetary Fund, which wanted the banks to
get a clean bill of health before the end of Ireland's sovereign
bailout in December.
Ireland's financial regulator, Matthew Elderfield, said the
country would conduct two exercises - one on the quality of
assets before the end of 2013, followed by full stress tests in
the first half of 2014.
The comments confirmed a Reuters report in May that Ireland
had resolved a standoff with its lenders over the timing of the
stress tests, which aim to gauge banks' resilience to economic
"What we will see is towards the end of this year a kind of
first phase of work - asset quality review, look at provisioning
levels, look at the risk models the banks have got," Elderfield
told a parliamentary committee on Thursday.
"That will feed into the asset quality review of the ECB and
then the stress tests will come after that. So it will be a
phased process with some deliverables before the end of the
Ireland's banks have not been stress-tested since 2011 when
consultant BlackRock identified a 24 billion euro ($32 billion)
Dublin had wanted the tests carried out in conjunction with
a European-wide exercise, expected in mid-2014.
The finance ministry said it would produce a final report on
the banks' implementation of their deleveraging plans, and
compliance with asset disposal and run-off targets will be
discussed with the European Commission, IMF and European Central