Bank may need to raise €1bn

BANK of Ireland could be forced to raise over €1 billion in fresh capital to guarantee its key capital ratios are in line with best international practice.

That is significantly higher than some analysts believe is necessary, but it is understood the bank, given the right market conditions, will aim for that figure.

That’s about half what AIB said it intended raising to bring its capital ratios in line with best international practices that have become more stringent since the global credit crunch caused havoc for the banks and the global credit markets.