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BoI sees no need for more cash - 25-Nov-2009

BoI sees no need for more State cash

Bank of Ireland does not foresee the need for further state bailouts according to the restructuring plan submitted to the European Union, though it said the state would remain a substantial owner. The bank, which received E3.5 billion in state capital in return for an indirect 25pc stake, is also expected to transfer more than E15 billion of loans to the National Asset Management Agency "bad bank".
Chief executive Richie Boucher said on Wednesday the bank would meet regulatory requirements and also capital levels which satisfy bond markets, despite the hole left in its balance sheet after the NAMA transfers.
However, anticipating increases in minimum capital levels required by regulators, the bank will look for fresh sources of capital, Boucher told a parliamentary hearing.
The plan submitted in September under EU state aid rules does not, however, envisage any further state injections of capital, he said.
Governor (chairman) Pat Molloy said Ireland would still end up with a significant shareholding in the bank after the restructuring plan submitted to Brussels.
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