Some Ulster Bank loans are expected to be placed in the bad bank of Royal Bank of Scotland as part of the British government plans for the part-nationalised lender.
However, Ulster Bank is likely to remain open in Ireland after RBS apparently decided against shutting down the Irish lender.
Royal Bank of Scotland is set to unveil a huge restructuring.
As part of the restructuring plan, RBS will create an internal "bad bank" where it will move as much as €47bn worth of so-called "toxic assets".
Much of those loans will come from Ulster Bank, which lent heavily in Ireland during the boom.
Those loans will be run down more aggressively than the rest of the bank's performing loans.
The UK government has bailed out RBS to the tune of around €54bn since 2008 in an effort to stave off its collapse.
About €16.9bn of those funds have been pumped into Ulster Bank.
Britain's chancellor George Osborne is under pressure to restructure RBS and get the bank back into private ownership, and as part of that effort has been pushing for the lender to be either broken up or dramatically restructured.