Anglo Irish Bank, Irish Nationwide Building Society and AIB won temporary European Union approval for State support.
Regulators said that they temporarily approved Anglo's recapitalisation of €4.9 billion and a State guarantee for off-balance sheet transactions and Irish Nationwide's €2.7 billion recapitalisation. It also authorised two capital injections for AIB of €9.8 billion.
The State is pumping money into the banks to raise capital requirements after the European Union and the International Monetary Fund approved an €85 billion bailout for the country.
"The Irish banking sector is experiencing profound difficulties at the moment," EU Competition Commissioner Joaquin Almunia said in the statement. "The measures approved by the commission today for Anglo Irish Bank, INBS and Allied Irish Bank are necessary to ensure that these institutions meet their respective obligations and will help to preserve financial stability in Ireland."
AIB will have to revise its restructuring plan in return for the aid. The EU said it had to be "satisfied" that there is a "significant contribution by the bank's shareholders and subordinated debt holders to the restructuring costs."
Bloomberg