Pat Molloy, a former chief executive of the Bank of Ireland, is to become the financial institution's new chairman.

Mr Molloy is to fill the position which will be left vacant by Richard Burrows, who is standing down next month.

Bank of Ireland is to meet with Finance Minister Brian Lenihan tomorrow.

The lender is now 25% owned by the National Pensions Reserve Fund on behalf of the State.

RTÉ News understands the fund's committee is to appoint Pat Molloy to the board of the bank. The bank's directors will also agree to make Mr Molloy chairman.

Effectively, it means the State's representative will lead the board of the financial institution.

Mr Molloy served as chief executive until 1998 and is also a former chairman of CRH.