State investment in republic’s banks ‘inevitable’

THE Government will have to invest billions in the republic’s banks to offset huge losses on property backed loans, according to banking experts.

And it is regarded as inevitable that mergers will be forced on financial institutions, with permanentTSB owner Irish Life and Permanent the most likely to be involved.

In separate pieces on Irish banks NCB and Merrion Stockbrokers forecast further possible Government intervention, mergers and a cut in dividends.