Elderfield: State will not provide recapitalisation funding

The Deputy Governor of the Central Bank has said that although he expects banks will need recapitalisation in the future, he does not believe the state will have to provide the funding.

Matthew Elderfield has told a German newspaper today that Irish financial institutions were likely to need funding to the tune of €4 billion over the next number of years.

But he said that he expects banks will raise the additional funding themselves.

However, Mr. Elderfield warned that in order for this to happen, Irish banks need to start making profits again 'sooner rather than later'.