Honohan: Sell main banks overseas

THE Governor of the Central Bank has said that the best way to achieve stability in Ireland’s banking system is to sell the main banks to overseas players — but added that he would be “disappointed and surprised” if all of the €35 billion earmarked for the banks, from the IMF/EU bailout, is ultimately needed.

Addressing the Institute of International and European Affairs (IIEA), in Dublin yesterday, Patrick Honohan said that foreign ownership of the main Irish banks would introduce fresh capital, more risk control and other management skills to the system.

“It seems evident that placing the continuing parts of the system on a firm footing can best be done through the involvement of new foreign owners.