AIB and BoI ‘will need more capital’

THE Government could end up owning up to 50% of AIB and Bank of Ireland, both of which need “significantly more capital,” the governor of the Central Bank, Patrick Honohan has said.

Mr Honohan, who was named as the governor of the Central Bank in September said the capital injection would be needed after their so-called “bad loans” are transferred to the National Asset Management Agency (NAMA).

He went to say that there were, however, other options. AIB and Bank of Ireland have claimed they will be able to resist further Government investment by raising their own funding in a variety of ways.