AIB ‘would shut if those in arrears walk away’

AIB would be forced to close if all its customers in mortgage arrears simply handed back the keys of their homes, the bank’s top executive has admitted.

AIB chief executive David Duffy confessed yesterday the bank was simply not capitalised sufficiently to sustain the losses which AIB would incur to write off such debt.

“If everybody goes back and throws the keys in, you can kiss AIB goodbye,” remarked Mr Duffy.