Permanent TSB is strong enough to raise capital from private investors and will not require further state assistance if it encounters problems in upcoming European stress tests, Finance Minister Michael Noonan said last night.
The state-owned mortgage lender said last week it had appointed Deutsche Bank to advise it on its future return to private ownership.
The Sunday Times reported that the German bank was on standby to help raise capital if the stress tests required it.
"If they require extra capital, they are strong enough to get the small amount of capital they require on the markets, so we don't see any risk to taxpayers," Mr Noonan told a post-Budget news conference.
He added that AIB and Bank of Ireland were very secure in capital terms.