Permanent TSB reassures customers after failing ECB test

One of Ireland’s leading banks has moved to reassure its 1.3m customers after it failed the European Central Bank’s stress test.

Permanent TSB is scrambling to plug an 885m euro (£696m) hole in its reserves exposed by the test.

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The ECB confirmed the four other main Irish financial institutions - AIB, Bank of Ireland, Merrill Lynch and Ulster Bank - all passed the requirements.

In a statement yesterday, Permanent TSB Group chief executive Jeremy Masding said the lender has already “provided for” more than 80 per cent of its capital shortfall.

“The tests were based on our position at the end of December last and we’ve made huge progress since then on a number of fronts,” he said.