The Minister for the Environment says he believes the pay of bank executives will have to be cut.

Reports suggest that AIB and Bank of Ireland have told the Government they could not end the payment of bonuses to their executives for contractual reasons.

Mr Gormley said he believed the Government position in negotiations with the banks in the run up to recapitalisation would be that executive pay would have to be cut back substantially.

Meanwhile, the Fine Gael leader is seeking a meeting with the Taoiseach, the Central Bank and the Financial Regulator to discuss the financial crisis, ahead of any recapitalisation of the banks.

In a statement, Mr Kenny said that before his party could support the Government's banks recapitalisation plan, his party wanted to establish the true state of the banking crisis.

He said the party also wanted to make sure the proposals will get credit flowing and will not bail out international financial speculators.

Mr Kenney said the banks should not be led by what he described as the management teams who brought the banking system to the edge of collapse.