Shares jump 41% Bank of Ireland

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1. April 2011 last updated at 16: 47 GMT Bank of Ireland hopes to keep its independence Bank of Ireland shares 41% have jumped on hopes that Government do not have a majority stake in the company.

However Irish life and permanent fell 54%, a day after the results of stress tests on the Irish banking system were announced.

The tests found that the nation's banks need to survive an extra reinsurance segment euros (£ 21 billion), the financial crisis.

Bank of Ireland, said that it would able to its capital requirements and are thus independent.

Closed its shares in the 31 cents. Irish life closed 17 euro cents.

"It seems very likely that the Government have end a controlling interest to Irish life & permanent," Emer lang is banking analyst at stockbroker Davy in Dublin said.

Capital requirements

Bank of Ireland has been appointed, 5.2 EUR ($7 billion, £ 4 billion) from early summer to increase capital requirements. The Bank said, would do it.

"It has potential to some of the more debt management," Ms. lang said, adding that some could be the rest of existing shareholders, to minimize the Government involvement.

The Irish Government currently owns a 36% stake in Bank of Ireland. Investors hope that it will keep its stake below 50%.

"The Bank of Ireland has at least a fighting chance of maintaining their independence," said Ms. lang.

"It has to keep three months from the Government hands".

Fewer banks continue reading the main story

the grievous consequence is that it a lack of capital of £ damage totals in these banks... "This is a huge sum for them to find."

Originally posted at the end Robert Peston, business editor, BBC News Irish life & permanent has to increase euro billion. Emer lang said, that it can to EUR 1.1 billion from the life business and debt management, but, that it would struggle, the remaining were to increase.

Shares in Allied Irish banks first 15% fell but soon aufgeprallt back and closed by 11% to 21 cents.

The Bank is already mostly owned by the Government, and the Government involvement may be thrown, she said.

Allied Irish banks will be merged into expected of a Government plan to reduce the number of the banks of the country building society (EBS) as part of.

Bank of Ireland and Allied Irish banks are expected to stand still on the banking system are the two most important "pillar banks" in the future.

Last month, it was announced that the heavily indebted Anglo Irish Bank would be merged with the Irish nationwide building society and its assets auctioned off.

Economic "Recovery"

Standard & poor's rating agency said the latest round of tests were robust, despite criticism, that the scenarios included in the review were no worse than the current economic situation in the Republic.

Irish Government however, but to a smaller value than expected downgrade it debt under a review.

"It is as positive as a downgrade can be," said Eoin Fahy, Economist at Kleinwort Benson investors.

S & P said that it expected the Irish economy gradually.

"We are of the opinion, which... has reached an end the strong contraction in Ireland's nominal GDP for 2008, and the Irish economy is now on gradually recover," said the Agency in a statement.

Rival agency Fitch, however, said it was larger than expected decline in the economy "considerable uncertainty" about the prospects for growth this year after one at the end of last year.

He said "The weaker GDP baseline, as well as increased capital bank charges mean on the 31 March 2011, that the Government is debt to GDP ratio higher than in the December 2010 Fitch's projection from a peak of 103% of GDP from rising".

'Burn' bondholders

Most of the restructuring of the Irish banking system costs shall be borne by the taxpayer.

Finance Minister Michael Noonan had tried, to get to share German, US and UK investors in Irish bank bonds, in the last, but this his plan by the European Central Bank (ECB).

The ECB was large investors panic and it might be difficult bond issuers of to raise funds, which a damaging credit crunch.

This would also mean Irish banks it might be difficult to find money in the future through the issuance of bonds.

"It would inhibit means abzurufenden their capacity on the market in two and a half, three years time, when people, they are going, be the means of search have split, the last - by burning the bondholders - the expression to use in" Mr. Noonan said.