AIB has named David Hodgkinson, former chief operating officer at HSBC Holdings, to be interim executive chairman of the bank.
Mr Hodgkinson (60) who retired from HSBC in 2008 after 39 years, will lead AIB "through this difficult period" and manage the search for a new group chief executive, the bank said in a statement.
It announced last month that managing director Colm Doherty and executive chairman Dan O'Connor would step down, after the Central Bank announced the lender will need an additional €3 billion of capital to reach new regulatory targets.
Mr O'Connor departed on October 13th.
"My objective is to work closely with all AIB stakeholders to tackle the serious challenges which confront the bank," Mr Hodgkinson said in the statement. "Our success in this endeavour is important not only to the bank, but also in restoring Ireland's economic strength."
Minister for Finance Brian Lenihan welcomed the appointment.
He said Mr Hodgkinson brought "a wealth of international banking experience" to the role and his leadership would be "critical in enabling AIB to overcome its current challenges and play its full part in Ireland's economic recovery".
The cost of rescuing the country's lenders may jump to as much as €50 billion euros, the Government has said.
The €3 billion AIB was directed to raise is in addition to €7.4 billion it was told by the regulator in March to generate by the end of the year.
Additional reporting: Bloomberg