Bank of Ireland to establish new holding company
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.