Irish Life & Permanent has admitted that it has some exposure to senior debt issued by Icelandic banks. But a spokesman for the group said it has a strong and flexible capital position.
Iceland's three main banks have been taken over by the state in recent weeks as the financial crisis has hit the country hard.
'In common with many other banks here, we do have some exposure to senior debt issued by the Icelandic banks which are being taken into state ownership,' the spokesman said.
'The Irish Life & Permanent group enjoys a strong and flexible capital position with no exposure to commercial property loans or development loans and we regard the situation as very manageable from our perspective - regardless of what scenario unfolds,' the spokesman said.
He added that the group would be updating the market on the issue when it publishes its next trading statement in the middle of next month.
Shares in IL&P closed down over 12% at €3.10 in Dublin this afternoon - down 45 cent.
