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IL&P may be next for state aid

IRISH Life & Permanent may be the next lender on the list for Government assistance after this week's bank stress tests.

The only Irish bank which remains privately owned has so far avoided taking State capital.

IL&P's profitable investment and pensions business and the decision of Permanent TSB to avoid lending to developers meant it has not had to resort to Government cash since the banking crisis began in 2008.

But the group, which was the biggest mortgage lender during the property boom, could come under the intense scrutiny of the Central Bank tests which will be looking at residential and buy-to-let mortgages.

The move may lead to the effective nationalisation of the domestic banking sector.

IL&P is scheduled to hold a meeting of its board today and the result of the stress tests will be revealed on Thursday. The final parameters of the stress test exercise are open to discussion as talks continued between the Central Bank of Ireland and the European Central Bank, the EU Commission and the International Monetary Fund.