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BoI has enough capital to avoid gloomy predictions

BANK of Ireland escaped the gloomy forecast this morning as the Financial Regulator revealed it had already met its capital requirement.

So far, the bank has transferred €3.75bn of loan assets to NAMA at a discount of 36pc.

Although the final tranche of NAMA loans may have a higher discount of up to 42pc, the Central Bank has confirmed that the bank has sufficient capital to meet the standard to accommodate this increase.

And as the Educational Building Society (EBS) is due to be sold on, it does not have any material implications for the banking system.

Finance Minister Brian Lenihan said that the projected final NAMA discount for EBS is in the region of 60pc.

"The Central Bank has advised that this final discount will have no material implications for the overall capital requirements of the banking system," he said. "The Society is in discussion with a number of parties about its future and any adjustment in its capital need that arises will be accommodated in the outcome of those discussions in due course.

"The EBS sales process is ongoing," he added.