Readers like you keep news free for everyone.

More than 5,000 readers have already pitched in to keep free access to The Journal.

For the price of one cup of coffee each week you can help keep paywalls away.

Support us today
Not now
Sunday 28 May 2023 Dublin: 12°C
Julien Behal/PA Archive/Press Association Images The governor of the Central Bank, Patrick Honohan will reveal all later today
# Stress Tests
The Rumour Mill: What the bank stress tests may reveal
We bring you a guide to the latest rumours and speculation regarding the bank stress tests and how you can follow the results as they emerge later today.

Last updated 3pm

THE RESULTS OF the stress tests on the Irish banks are expected later this afternoon but that hasn’t stopped a plethora of rumours emerging over the last few days and in the last few hours.

This morning we reported that the stress tests are expected to reveal that three banks will need €9 billion in new capital between them.

There was also talk that Bank of Ireland and Irish Life & Permanent will be nationalised but there’s been plenty of speculation emerging since.

Here, brings you the latest rumours and speculation:

  • Newstalk is reporting that a further €23.5 billion will be pumped into the banks most of which will go to AIB which is to be merged with EBS. €5 billion has been set aside for Bank of Ireland.
  • The environment minister Phil Hogan has said that the government intends to restructure the country’s financial institutions and said that the changes will be announced in the Dáil this evening, RTÉ reports.
  • The stress tests are expected to show that the banks will need between €20 billion and €25 billion, according to Reuters.
  • Medium term funding from the European Central Bank will come at a premium rate, the news agency adds.
  • The Financial Times reports that the bailout figure could be around €15 billion.
  • The government plans to merge EBS building society and Allied Irish Banks (AIB), reports the Irish Independent.
  • It also reports, citing government sources, that “special vehicles” will be created to take €80 billion off the balance sheets of the four main banks.
  • The insurance and pensions arm of Irish Life will be sold off, according to The Guardian.

The Central Bank will be live streaming their press conference at 4.30pm this afternoon and the report will be published on the Central Bank website at around the same time.

What is a bank stress test? Find out here >