Allied Irish Banks believes that after the injection of €3.5 billion in capital by the Government it is now “well capitalised” and is in a good position.
Eugene Sheehy, AIB chief executive, said that looking back over some of the lending decisions made by the bank, said "I regret them, and I think we could have made better decisions".
And while the bank had made mistakes, Mr Sheehy said there was no question of him resigning and that he retained the confidence of the board and was committed to taking AIB forward.
The bank was "very broadly based" and that half of its profits are earned abroad, he told RTE's
Morning Ireland.
He said discussions between the bank and the Government had been detailed and specified how much money would be put aside for small businesses and first-time buyers, adding that the bank would be accountable for the support it had committed to this sectors.
Mr Sheehy also said he had volunteered a 25 per cent reduction in salary and said he did not expect any bonus payments or salary increases for the remainder of his career.
"I would be the first to admit that bank remuneration, particularly at my level similar levels to me, got out of control to some degree where there was too much reward for short-term gain."
"That clearly has to be changed, not only in Ireland but everywhere. . .remuneration has to be linked to long-term risk and risk taking"
He said remuneration for senior executives in AIB was down 15 per cent this year and that no bonuses would be paid. Members of the bank's board had taken a 25 per cent cut in fees, he added.
In conference call with brokers this morning senior AIB executives said they expected the number of first-time buyer mortgages to rise from 3,000 in 2008 to 4,000 this year and said there were "tentative signs of recovery in the mortgage market.
