Three Irish banks are to be tested under a new round of European stress testing.

Irish Life & Permanent will join Allied Irish Banks and Bank of Ireland on the list of 91 banks being tested by the European Banking Authority, the new London-based bank supervisory agency.

The results are due out in June.

Last year's European stress tests were seen as flawed, as both AIB and Bank of Ireland passed, but required further bailouts just two months later.

Permanent TSB to pass on interest rate hike

A spokesman for the Permanent TSB has confirmed that it will pass on the ECB interest rate rise of 0.25% to its customers on variable rate mortgages from the 18 May.

There will be no changes to fixed rates.

The spokesman added that ECB interest rate rise would automatically be passed on to their customers with tracker mortgages from 16 April.