Irish banks 'may need more capital'

 

The European Commission said it cannot rule out the possibility that Irish banks may need more capital, it said in documents released by Germany's finance ministry.

"Irish banks have been capitalised to a very high level relative to peers in other European countries and relative also to a conservative adverse scenario based on highly credible stress tests," the commission said in the documents obtained by Bloomberg News, which were supplied to German politicians.

"Yet the risk of possible further capital needs in the future cannot be fully excluded, especially if the growth outlook deteriorates beyond what is currently expected."

A spokesman for the Department of Finance declined to comment.

The comments were based on the troika visit to Ireland in October, as part of the oversight of the Irish bailout programme.

Minister for Finance Michael Noonan said this week he does not expect the banks to need more capital, on top of the €63 billion already committed by the State.

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