BOI, AIB say they don’t need additional capital

Bank of Ireland and AIB have said they will not need any additional capital after a review of their loan books by the Central Bank.
For the last few weeks the Central Bank has been examining whether the banks have set aside enough money to deal with bad loans.
AIB says the review found it does not need to raise any extra money, and Bank of Ireland says the same.
However the Central Bank found BOI should set aside an extra 360 million euro to deal with losses on mortgage arrears.
That number has spooked the markets this morning and Bank of Ireland shares are down around 4 percent. Our Business Editor Ian Guider explains:
“What Bank of Ireland are saying in a statement is ‘What the Central Bank have applied is a universal view of what’s happening in the mortgage market – that people are in more arrears, that the mortgage books are deteriorating a bit – but it doesn’t take into account that Bank of Ireland has so far performed better than the likes of PTSB and the likes of AIB and Ulster Bank” he said.
“So it’s disputing some of the Central Bank findings” he added.