Stress tests reveal Irish banks need a��24bn

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

It has been revealed that Irelanda��s lenders will need an additional a��24 billion (A?21 billion) to weather the financial crisis.

These were the findings of the stress tests conducted on Irelanda��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 yeara��s tests failed to reveal the weakness among banks in Ireland.

The latest figures take the total cost of the Governmenta��s bailout to around a��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, Irelanda��s banking system came close to meltdown after the slump in the countrya��s property market resulted in a fall in the value of investments linked to it.

Ireland, once known as the a�?Celtic Tigera�? 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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