AIB to Seek External Funding
Executive chairman for AIB David Hodgkinson has said that the bank is still dependent on the ECB and Europe, though that dependence is lessening as time goes on. The hope is that with external market funding AIB can significantly reduce dependence on the ECB and Europe.
Hodgkinson said that because of the weak domestic market, complete independence would not be possible in the immediate future “Because the deposit base in Ireland’s domestic economy is insufficient for domestic lending, we will depend on international funding in some way, ideally market funding, for some time to come.”
AIB announced yesterday that the Minister for Finance Michael Noonan and the National Pensions Reserve Fund Commission have made a joint capital contribution of €6.054 billion to the bank for no consideration. This means AIB has the necessary capital to meet the PCAR requirement.