The chief executive of the EBS Building Society, Fergus Murphy, has said his bank would like to be invited by the National Asset Management Agency - when it is established - to deal with its property loans worth between E750m to E800m.

Speaking on RTE's This Week programme, Mr Murphy said EBS would remain reasonably strong with a discount of between 20% and 40%, but would still need E300m of Government capital.

He also said EBS had no immediate plans to increase residential mortgage interest rates, but that the situation would be reviewed in October.