New powers to take over banks in crisis

SWEEPING new powers are to be given to the Central Bank, headed by Patrick Honohan (right), to take over, run and break up banks under just published legislation.

The law will ultimately supersede the controversial Credit Institutions Stabilisation Act by the end of next year.

As part of the EU-IMF bailout, Ireland was required to introduce new laws to take control of failing banks in times of future crisis.

The legislation aims to clean up bust banks without creating a massive burden for the taxpayer.