Business

Saturday 29 April 2017

Bank of Ireland to establish new holding company

Bank of Ireland branch on Dublin's College Green
Bank of Ireland branch on Dublin's College Green

Donal O' Donovan

Bank of Ireland is to establish a new holding company to issue bonds and shares at a remove from ordinary savers, following a recommendation from regulators.

The Euro area’s Single Resolution Board  and the Bank of England, working together, reached a joint decision on a new structure and have advised the bank of their preferred plan. Bank of Ireland operates here and in the UK.

The new structure would mean that in the event of a financial crisis at the bank bondholders of a new holding company could be burned with no negative implications for savers.

The changes are not expected to  affect the bank’s most important capital levels. Any changes will have to be approved by shareholders.

 

Online Editors

Promoted articles

Also in Business