A day after the publication of the Irish banking system stress test results, the Bank of Ireland have announced a rise in shares.

The 33% jump is said to be a result of the government not having to take a majority stake in the firm.

The stress tests concluded that Irish banks will need an injection of 24bn euros (£21.2bn) to survive the financial crisis.

Being able to meet capital requirements, the Bank of Ireland would be able to remain independent

however, in early trading, shares in Irish Life & Permanent fell 65%.

Emer Lang, a Dublin Banking Analyst with Davy's, told the BBC: "It seems very likely that the government will end up owning a majority stake in Irish Life & Permanent.

Bank of Ireland has been ordered to raise 5.2bn euros ($7.4bn; £4.6bn) by early summer to meet capital requirements. The bank said it would do so.

"It has potential to raise some of that through further debt management."

Ms Lang added: "Some of the rest might come from existing shareholders, thus minimising the government's involvement."

"The Irish Republic's government currently owns a 36% stake in Bank of Ireland. Investors hope it will keep its stake below 50%.

"The Bank of Ireland has at least a fighting chance of maintaining its independence.”

"It has three months to keep itself out of the government's hands."

(BMcN)