Molloy to represent public as new BoI chairman

Pat Molloy, a former chief executive at the bank, will take over as chairman from Richard Burrows, who is due to step down in July.

Sources said the Government was impressed by his banking credentials and the fact that he has no links with the current management of the bank.

The appointment was made by the bank and the National Pensions Reserve Fund, which is ploughing billions of taxpayers' money into the lending institutions to keep them afloat.

Shareholder

The Government is poised to become a major shareholder in Bank of Ireland after the National Asset Management Agency (NAMA) is up and running.

A spokesman for Finance Minister Brian Lenihan confirmed last night that Mr Molloy will serve as a public interest director on the board.

Mr Molloy's appointment was seen last night as placing a significant presence on the board of the bank at a time of tumultuous change.

The 71-year-old is widely credited for turning around the bank's fortunes in the early 1990s. He took over from Mark Hely-Hutchinson.

Mr Molloy served as a non-executive director of the bank for three years after he stepped down as chief executive. He has also acted as chairman of both CRH and Enterprise Ireland.

Mr Burrows indicated at the unveiling of the bank's full-year figures last month, where it unveiled a €7m loss, that he was stepping down, saying there had to be accountability at the top for the disastrous result.

It was known that the bank was going to look externally for a replacement, as it had encountered criticism for naming inside candidate Richie Boucher as chief executive, succeeding Brian Goggin in February.