Irish banks 'to spend millions' to meet stress test requirements

12 July 2011

Banks in Ireland are likely to spend hundreds of millions of euros in an attempt to meet requirements set out by stress tests carried out earlier in the year.

In March, the Central Bank demanded AIB, EBS, Bank of Ireland and Irish Life and Permanent raise €24 billon ($33.3 billion) to improve confidence in the country's banking sector, the Irish Times reports.

The four banks have since advised the Department of Finance that they will require considerable expenses in order to generate the revenue, with Bank of Ireland - which first opened its doors to the public in 1783 - claiming €150 million will be needed.

This cash will mainly be spent on legal and financial advice, as well as underwriters - and the bank stated this estimate is derived from market norms.

Indeed, AIB has already spent €6 million on these fees and Irish Life and Permanent has splashed out €2 million.

By Asim Shah

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