The Minister for Finance has said tomorrow will see 'strong and resolute' action to deal with the banking crisis in Ireland.
Brian Lenihan, speaking this afternoon, said he would be announcing a strong recapitalisation programme for the banks. Mr. Lenihan is to make a statement to the Dáil tomorrow, following statements from NAMA and the Financial Regulator.
Bank shares fell sharply in Dublin today ahead of tomorrow's announcements about the future shape of Irish banking.
See how bank shares performed here
Tomorrow afternoon will see a co-ordinated action to restructure the finances of Ireland's banks. The National Asset Management Agency will announce details of the first loan transfers, while the Financial Regulator will decide how much money banks will need to set aside for bad loans. This will shed light on how much new capital the lenders will need.
There is speculation much of investment will have to come from the State in return for greater Government ownership.
It is understood that NAMA had planned to unveil the discount on loans taken from Irish Nationwide, EBS and Bank of Ireland today, but decided over the weekend to delay this until markets close tomorrow evening.
The delay has forced Bank of Ireland to postpone the publication of its results for the nine months to the end of December from tomorrow until Wednesday.
Speculation suggests that the regulator's new rules on capital levels and NAMA's discount on the first loans being transferred, could see the State owning up to 40% of Bank of Ireland and 70% of AIB, and taking control of EBS and Irish Nationwide.
Meanwhile, AIB issued a short statement this morning confirming that it is in discussions with the Financial Regulator about how much capital it will need. The bank said it would update the market with a further announcement once these discussions have been completed.