Regulator warns banks amid poor outlook

Irish banks need to raise up to €4bn, preferably from the market, to meet international capital requirements, Financial Regulator Matthew Elderfield said, as the European Commission warned that bank deleveraging plans may be at risk.

While the European Commission remarked positively on the progress made by the domestic banks on recapitalising and on the deleveraging under the bailout programme, they were not as optimistic about the future.

“Looking ahead, challenging market conditions and the deteriorating quality of remaining assets for disposal may put the achievement of future deleveraging objectives at risk,” the commission report said.