AIB and BoI to be supervised directly from Frankfurt

It looks as if AIB and Bank of Ireland will both be supervised directly from Frankfurt when the EU banking union comes into operation in Mar 2014, according to the Department of Finance’s Aidan Carrigan.

Mr Carrigan appeared before the Oireachtas Finance Committee yesterday along with other officials from the department and the Central Bank to answer questions about the implications of a new EU banking union for the Irish banking system.

Mr Carrigan said the criteria for direct supervision by the ECB was either a market capitalisation of €30bn or account for 20% of GDP, but it would not be finalised until the methodology is finalised.