A new eurozone fund for troubled banks may face a one-month delay and not go live in January, a prospect that would be a major embarrassment for a critical element of banking union, its chair said in Dublin yesterday.

The European Central Bank has raised the level of emergency cash available to Greek banks by €1.1bn, people familiar with the decision said, as Ireland makes contingency plans in case Greece is forced to exit the euro.

The ECB will rewrite a non-disclosure agreement with lenders undergoing its current health check after fewer than half the institutions agreed to the terms.