The government should commit to selling at least 50 per cent of the state's holding in AIB by 2019, Fine Gael Dublin MEP and former Minister of State at the Department of Finance Brian Hayes has said.

Mr Hayes said the country paid far too high a price for saving the banks, and the government should sell AIB as soon as practical.

“What’s important now is to recover as much as possible of the investment and the future sale of AIB is critical in this regard. The total state investment in AIB was €21 billion and by July close to €6.5 billion will have been recovered from AIB.”

Mr Hayes said the government should make a firm commitment that the state’s holding in AIB should be no more than 50 per cent by the start of 2019.

“It is important for the government to get out of the banking business because it often leaves the government entangled in the sometimes competing interests of corporate profit and customer protection.”