Revelations that AIB was involved in assisting clients in avoiding tax through offshore tax havens have been described as “deeply disturbing”.

The former chief executive of Lloyds has defended the price it paid for its stricken rival HBOS, denying claims he should have driven a harder bargain.

Britain’s banks will have to find another £10 billion to cover potential losses in their portfolios of credit card, personal loan and car finance debt, the Bank of England has said.