Other Citywire websites
Stay connected:

View the article online at http://citywire.co.uk/new-model-adviser/article/a483672

Irish banks need further €24bn cash injection

by Michelle McGagh on Apr 01, 2011 at 08:24

Irish banks need further €24bn cash injection

Ireland’s banks will need a €24 billion injection to strengthen the country’s ailing banking system, pushing the government’s bailout of the financial sector to €70 billion.

Stressing testing of the country’s banks has revealed Irish banks need far more support than first thought. As the results of the tests were revealed, the Irish government announced a shake-up of the industry which is hoped will restore investor confidence.

Allied Irish, which had been told to raise €3.5 billion, must now find €13.3 billion. Bank of Ireland must find €5.2 billion.

Irish finance minister Michael Noonan said the government planned to create ‘two new strong universal pillar banks’ based around the Bank of Ireland and a new entity comprising Allied Irish Banks and the Educational Building Society.

‘The banking system must be the enabler of economic recovery, by restoring public market confidence in its financial health, management competence and ethical integrity,’ said Noonan.

He added that the plan would put the banking system on a firm footing for the future and break the bonds with our toxic banking past.’

This will be Ireland’s fifth attempt to rescue the banking sector and start to restore its economy, which has so far cost it €46 billion.

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Long time coming: is the recovery here to stay?


Click here to watch a series of sponsored interviews with Jupiter's fund managers on the UK equity market.

Today's top headlines

More about this article:

Archive


Read more...

Andrew Fisher to exit Towry

by Jun Merrett on Apr 16, 2014 at 10:53

Sorry, this link is not
quite ready yet