The proposed structure will provide a secure home for Anglo’s depositors, insulating them from the process of running-off the loan assets over time. The Government has asked the Central Bank to determine the appropriate levels of capital needed in the two institutions into which Anglo is being split.
There are some technicalities involved, and, while I don’t want to anticipate the exact numbers to be published, it may be worth explaining that the type of capital assessment we are doing for Anglo is different from those we have already conducted for the other Irish banks, due to the nature of the split bank structure, the goal of working out assets and of derisking the balance sheet and the prospect of a change in the regulatory status of the asset recovery entity over time.