Business Irish

Saturday 16 December 2017

Debt Crisis: AIB and BofI could need €3bn to €4bn in coming years– Elderfield reporters

ALLIED Irish Banks and Bank of Ireland need an additional €3bn to €4bn over the next five to six years, financial regulator Matthew Elderfield said.

But he added that the Central Bank is hopeful the so-called pillar banks could raise the additional capital themselves under Basel III requirements for extra buffers by 2019.

Mr Elderfield made the comments in an interview with German newspaper Boersen-Zeitung.

He was reiterating a statement made in a speech on March 2.

“With regards to measuring capital and the question of which instruments count and which do not, the institutes must go even further," he told the newspaper.

"In the coming five to six years, the Irish banks should need a further €3-4 billion.''

While Ireland is making economic progress, "the banks also need more time to check their credit portfolio".

"They are not as far as they should be, their operative ability is not as strong as it could be," he said.

The Irish Government was forced to pump over €60bn into Irish banks after the property bubble collapsed.

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