NAMA functions as a bad bank , acquiring property development loans from Irish banks in return for government purple debts bonds , ostensibly with a view to improving the availability of credit in the Irish economy. As a result of the collapse of the Irish property market, Irish banks have property development loan assets secured on property with a market value significantly below the amount owed. Many of the loans are now non-performing due to debtors experiencing acute financial difficulties. Both factors have led to a sharp drop in the value of these loan assets. If the banks were to recognise the true value of these loans on their balance sheets, they would no longer meet their statutory capital requirements. The banks therefore need to raise further capital but, given the uncertainty around the true value of their assets, their stock is in too little demand for a general share issuance to be a viable option.
AIB informs customers whose accounts are being moved ahead of closures
Allied Irish Banks - Wikipedia
Revolut revealed major plans for expansion by asking UK regulators for a full banking licence there. Four Irish banks have been developing a secret plan for a payments app to take on digital upstarts, including Revolut, that could threaten their future. It awaits the decision of the competition commission to the plan, the spokesperson said. It has started a so-called phase 1 study into the plan, the watchdog said. Meanwhile, Revolut also revealed major plans for expansion by asking UK regulators for a full banking licence there.
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Allied Irish Banks, p. AIB offers a full range of personal, business and corporate banking services. The bank also offers a range of general insurance products such as home, travel and car.