Uncertainty in financial area may last weeks despite merger courtships

THE uncertainty over the future make-up of the Irish banking sector could well carry on for weeks, according to sources, despite feeling that the Government will add pressure this week on the main banks to close consolidation deals.

The long-running feeling is that the Government may pressurise a merger between AIB and the Irish Nationwide Building Society, although it would seem the other mooted possibility — a three-way tie-up of Bank of Ireland, Anglo Irish Bank and Irish Life & Permanent (IL&P) — is now less likely.

AIB yesterday said that any statement regarding its current stance was unlikely this week. Bank of Ireland, meanwhile, reiterated its stance that it had made no decision over unsolicited approaches made to it last week.