Minister for Finance Brian Lenihan has said tomorrow will see strong and resolute action to deal with the banking crisis in Ireland.
Speaking this afternoon, Mr Lenihan said he would be announcing a strong recapitalisation programme for the banks.
The minister said it is time to sort out the banking sector once and for all so that it can support economic recovery.
His comments come as shares in the two main banks heading into the National Asset Management Agency fell sharply in trading today.
AIB shares closed down 19.6%, while Bank of Ireland shares fell 10.4%.
The shares fell in value during what one trader described as a reasonably busy level of trading.
Tomorrow afternoon will see a coordinated action to restructure the finances of Ireland's banks, as NAMA announces details of the first loan transfers.
Statements will also be made by Minister for Finance Brian Lenihan and Financial Regulator Matthew Elderfield about the restructuring and capitalisation of the banking sector.
NAMA will say how much of a discount it will put on the property, land and development portfolios at the five participating institutions.
The original estimate was for a 30% discount on loans being transferred to NAMA.
This is now predicted to be much bigger, with up to 60% being mentioned for Irish Nationwide.
In addition, the Financial Regulator will decide how much money banks will need to set aside for bad loans. This will shed light on how much new capital the lenders will need.
There is speculation that investment will have to come from the State in return for greater Government ownership.
It is estimated that 40% of Bank of Ireland and more than 70% of AIB will end up in State ownership. That rumour has hit the bank shares hard.
