Banks hoping positivity will continue

The collapse of the domestic banking system forced the Government into an EU/IMF bailout programme in Nov 2010.

The prospects for the banking system in the next few years will largely determine whether the country can exit the bailout programme and regain market access at sustainable rates.

To this end, 2012 ended on a positive note for the two pillar banks. Bank of Ireland raised €1bn in new capital through an unguaranteed covered bond in November. AIB raised €500m in November through similar means. The last time an Irish bank tapped the private markets was mid-2010.