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Bank testing

Bank of Ireland and Allied Irish Banks (AIB) will face tough stress tests from the EU banking regulator along with another 89 European banks.

The tests are to assess potential losses and to reassure markets that the institutions were strong enough to withstand any difficulties they are likely to face in the wake of the financial crisis.

Bank of Ireland and AIB have already been subjected to much tougher tests by the Financial Regulator. The tests determined that Bank of Ireland required €2.66bn to cover rising losses, while AIB needed a further €7.4bn.