Irish banks need €24bn more to survive economic shocks

Ireland has said its four remaining banks require another €24bn (£21bn) of funding to enable them to withstand potential losses from a worsening of the economy.

Patrick Honohan, governor of Ireland's central bank, on Thursday unveiled the results of "stress tests" on the banks, a condition of the country's international bail-out last November.

Mr Honohan said all four will need funds to boost their reserves and cover the cost of more loan write-offs.

Under the stressed scenario, which requires the banks to remain above a minimum core Tier 1 capital ratio of 6pc, Allied Irish Banks needs an additional €13.3bn, Bank of Ireland needs €5.2bn, EBS building society needs €1.5bn and Irish Life & Permanent needs €4bn.

The new figure will take the final bill for bailing out Ireland's banks to €70bn.

Mr Honohan said the measures being taken were "exceptional", but were essential to restore market confidence in the banks. (read more)