The government's considering a full Commission of Investigation into activities at IBRC.
The cabinet is considering the measure at its meeting this afternoon, amid growing public concern about the bank's dealings with customers like Denis O'Brien.
The proposal is being brought to cabinet by the Minister for Finance, Michael Noonan, this afternoon.
He's advocating that a Commission of Investigation is now the correct course of action after the latest allegations surrounding IBRC and its relationships with some customers.
The move comes a week after Catherine Murphy used Dáil privilege to allege that businessman Denis O'Brien was paying an interest rate on his loans of 1.25 per cent, far below the rate charged to other customers.
Government sources say the public concern at those allegations means the current investigation, being carried out by the bank's liquidators from KPMG, may only delay a full inquiry into IBRC's transactions.
One source said nobody would believe the liquidators if they found no evidence of wrongdoing in any of IBRC's commercial transactions, meaning a Commission of Investigation was now inevitable.
The cabinet's considering draft terms of reference this afternoon, which could be ready for the Dáil's approval as early as next week.
However the move will also mean a further delay in the outcome of any such inquiry - which could potentially see any adverse findings delayed until after the next general election.
