The incoming chairman of Anglo Irish Bank has confirmed that the bank was asked by the European Commission to examine the possibility of winding down the lender over 20 years.

Alan Dukes said the bank remained committed to the view that remaining open was the best option for the taxpayer.

In its original plan the bank had provided costs for immediate liquidation, a wind down over ten years and remaining open.

After that plan was submitted to Europe, the Commission then asked the bank to also examine the possibility of a wind down over 20 years.

Mr Dukes said that the Commission had no preferred option at this point.