Stress tests conducted on four of the largest Irish domestic banks show that the hard-hit financial institutions will collectively need an additional bailout of 24 billion euros to weather the ongoing poor economic conditions, the Central Bank of Ireland announced on Thursday.
The tests, which assessed the funding and capital requirements of Allied Irish Banks (AIB), Bank of Ireland (BOI), EBS Building Society, and Irish Life & Permanent (ILP), came as a result of an IMF-EU agreement brings the total cost of the bailout of Irish banks to 70 billion euros, Governor of the Central Bank Patrick Honohan said, according to the Irish Times.
AIB will need the most money at 13.3 billion euros, while BOI will require 5.2 billion euros and ILP will require 4 billion euros to survive. EBS needs the least at 1.5 billion euros.
The stress test results were followed by news of a banking sector shakeup, with the Irish Finance Minister announcing that EBS and AIB would merge. Dublin also said that it would be injecting capital into ILP, making the state the “likely” majority owner, and that ILP would sell off its insurance subsidiary Irish Life Assurance and other assets of its insurance arm.
The tests, which assessed the funding and capital requirements of Allied Irish Banks (AIB), Bank of Ireland (BOI), EBS Building Society, and Irish Life & Permanent (ILP), came as a result of an IMF-EU agreement brings the total cost of the bailout of Irish banks to 70 billion euros, Governor of the Central Bank Patrick Honohan said, according to the Irish Times.
AIB will need the most money at 13.3 billion euros, while BOI will require 5.2 billion euros and ILP will require 4 billion euros to survive. EBS needs the least at 1.5 billion euros.
The stress test results were followed by news of a banking sector shakeup, with the Irish Finance Minister announcing that EBS and AIB would merge. Dublin also said that it would be injecting capital into ILP, making the state the “likely” majority owner, and that ILP would sell off its insurance subsidiary Irish Life Assurance and other assets of its insurance arm.
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