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AIB is to be merged into a new entity (Photo: Matt Buck)

€24bn needed to regain confidence in Irish banks

Fresh stress tests conducted on Irish banks have revealed a €24 billion capital shortfall, with Dublin rapidly announcing a restructuring plan that will likely see the country's entire banking sector brought under government control.

Announcing the results of the tests on Thursday, Irish central bank chief Patrick Honohan said: "This proves to have been one of the costliest banking crises in history."

The stress tests gauged the ability of Irish banks to withstand further losses ...

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AIB is to be merged into a new entity (Photo: Matt Buck)

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