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According to efinancialnews.com, the banks may need to set aside up to €3 billion (£2.38 billion) over the next two years to cope with the strain.
London-based RBC analyst Hank Calenti said the need for the funds represents more than six times previous fiscal year provisions for the financial institutions.
Irish billionaire Sean Quinn has also revealed plans to buy a 15 per cent stake in Anglo Irish, Ireland's third-largest bank. A deal could be worth up to €490 million based on Anglo Irish's closing share at the end of yesterday's trading.
The Quinn family has also said it is are unwinding its interests in the bank through contracts of difference.
"The family regards these shareholdings in Anglo Irish Bank as long-term holdings with significant opportunity for capital growth," they said.
Irish homeowners could see as much as €140,000 knocked off the value of their properties, according to the Irish Examiner.
