The chief executive of Anglo Irish Bank has said he expects the bank to be split into a funding bank and an asset recovery bank by the end of the year.

Mike Aynsley said today the new structure decided on by the Government was not the format which had been previously discussed. But he added that, because of the similarities, much of the preparatory work had already been done.

Speaking to the News at One on RTÉ Radio 1, Mr Aynsley said the management structure of the two banks would have to be subject to a detailed review, but he said he hoped to use the existing infrastructure of the bank in order to keep down costs.

He also said he expected to remain involved with the bank.

Asked about whether the new funding, or savings, bank could take new deposits from customers, Mr Aynsley said it was critical that the Irish banking system demonstrated to foreign customers that Ireland was a safe place to put their money.

He said any extra 5% discount above current estimates on its NAMA loans would lead to a €1 billion extra funding requirement for Anglo Irish Bank.