Stress tests reveal Irish banks need €24bn

| April 1, 2011
Stress tests reveal Irish banks need €24bn

It has been revealed that Ireland’s lenders will need an additional €24 billion (£21 billion) to weather the financial crisis.

These were the findings of the stress tests conducted on Ireland’s banks – Allied Irish Banks, Bank of Ireland, Educational Building Society (EBS) and the Irish Life & Permanent.

The latest stress tests were deemed necessary after last year’s tests failed to reveal the weakness among banks in Ireland.

The latest figures take the total cost of the Government’s bailout to around €70 billion.

Patrick Honohan, Governor of Ireland’s Central Bank, comments: “The new requirements are needed to restore market confidence, and ensure banks have enough capital to meet even the markets’ darkest estimates.”

At the onset of the credit crunch, Ireland’s banking system came close to meltdown after the slump in the country’s property market resulted in a fall in the value of investments linked to it.

Ireland, once known as the “Celtic Tiger” economy, experienced a property boom in the late 1990s, with multinationals arriving to take advantage of one of the lowest corporate tax rates in the euro zone.

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