AIB shareholders have agreed to transfer €24bn of loans to the National Asset Management Agency at an extraordinary general meeting in Dublin.
99.7% of shareholders voted to approve the bank's participation.
AIB management told shareholders the bank expects to be paid an estimated €17bn worth of bonds in return for transferring the €24bn of loans to NAMA.
The chairman Dan O'Connor said the bank was exploring ways to raise more capital.
AIB chairman Dan O'Connor told shareholders at the meeting that the board fully accepts that many of its problems were 'self-inflicted'.
Mr O'Connor said he expressed the bank's deep regret to all its shareholders for the part AIB has played in the events, which led to today's meeting.
'I want to put on record our acknowledgement of, and gratitude for, the support of the Irish Government and taxpayers and the key role they have played in helping us deal with these unprecedented events,' Mr O'Connor stated earlier.
Mr O’Connor said that participation in NAMA would provide a number of benefits to the group that should support its business and help to improve its long-term outlook.
Despite freezing weather and being the day before Christmas Eve shareholders turned out in large numbers to the EGM.
During the meeting, some shareholders expressed their anger over how the bank was run.
Shareholder Dermot Carroll said he once had an inheritance and he now had AIB shares, while James Flood said participants were being 'treated with contempt' and said directors were 'not the slightest bit sorry' about events at the bank.
Participants expressed anger over the appointment internal candidate Colm Doherty to the role of managing director.
But Mr O'Connor said Mr Doherty was the best man for the job. He added there would be more management changes in future.
