BoI secures EU approval to get government help

BANK of Ireland has won EU approval for government help after it agreed to reduce reliance on wholesale funding and focus on “balanced risk” lending in Britain and Ireland.

The European Commission authorised Irish Government recapitalisations, guarantees and asset relief after the bank made plans to “substantially deleverage its balance sheet to reduce its dependency on wholesale funding”, exit risky portfolios and implement better risk management, regulators said. The bank will also offer services to small Irish banks to reduce rivals’ costs.

“Bank of Ireland has embarked on an ambitious plan to downsize and refocus its activities to better serve the Irish economy,” EU Competition Commissioner Joaquin Almunia said in the statement.