AIB, Bank of Ireland and Permanent TSB face having to pay an extra €6.5 million between them this year to cover the cost of being regulated by the Central Bank of Ireland.

This emerges in the Central Bank’s guide to funding regulations for 2016, which shows that its budget for regulating the financial sector will rise this year by 8 per cent to €148.3 million.

At present, the cost of regulating financial services companies is split 50-50 between the firms and the Central Bank, with some exceptions.

The domestic banks will pay €29.9 million between them this year, up from €23.4 million. This is the biggest contribution by any category of firms.

 In total, the various firms are being asked to pay €79.1 million to cover their share of the cost of regulation in 2016. This represents a rise of 19 per cent on the €66.2 million they paid last year.

The regulator had previously proposed recouping all of the cost of regulation from the companies but this met with opposition from the firms and the Central Bank appears to have settled on the old formula for this year.

Souce: Irish Times