European Commission has given final approval to Bank of Ireland's restructuring plan after the bank agreed to off load certain assets and wind down some portfolios.
Under the restructuring plan, Bank of Ireland has agreed to reduce its presence in certain markets by selling assets. It will shrink its activities in the British corporate lending market by running down two of its loan portfolios.
The troubled Bank of Ireland will also sell its New Ireland Assurance Company, its mortgage brokering business ICS Building Society and the 17% stake it holds in Irish Credit Bureau.
According to European Union state-aid rules, companies that receive government assistance to restructure are required to downsize their activities to make the institution viable.
In 2009, Bank of Ireland received a EUR3.5bn capital injection from the Irish state as it was badly affected by credit crisis and the bursting of the Irish property boom.
Joaquin Almunia, commissioner of European Competition, said: “I am confident that this plan will ensure a stable future for Bank of Ireland and contribute to financial stability in Ireland without unduly distorting competition.”