Government stakes in banks to have ‘positive implications for economy’

ANALYSTS said the Government taking a 70% stake in AIB and 40% in Bank of Ireland will have positive implications for the economy over the coming years.

A combination of announcements this week could result in the state acquiring such large stakeholdings in the country’s two biggest banks.

Goodbody analyst Dermot O’Leary said it is hoped, however, that at some stage in the future these stakes can be sold to the open market.