Two of the country’s biggest banks are trying to reassure the public that they could cope with another recession.

AIB and Bank of Ireland were among the worst performing financial institutions in Europe in recent stress tests.

Both banks will issues statements today claiming they would be able to absorb losses in the event of a downturn.

And want investors to know the figures used in the tests are outdated.

But Independent Market Analyst Brenda Kelly has said the economy here is still fragile: “The Irish banks are still very much in trouble in relation to the high levels of debt and of course the credit risk losses that might come from non performing loans in the near future.

“And of course if we get any major shocks over the next couple of years than these two banks will be tested quite severely.”