The Minister for Finance, Mr McCreevy, is hoping to sell the last of the State-owned banks by the end of the year. Much has been done to knock it into shape but the sale price will be dependent on the level of interest from prospective buyers.

ACCBank has had a difficult few years and the costs arising from many of its faults and failings have had to be settled in the last year. It is not the best time to be announcing losses of €21.8 million just days before the information memorandum on the bank's business is circulated to potential buyers. But the bulk of the exceptional items that plunged the bank into the red will be once off and its management insists that they have addressed whatever problems existed in the past.

ACCBank chairman Mr Padraic O'Connor is happy with the initial level of interest that has been expressed by various potential bidders to its corporate advisers. But he will not speculate on who will eventually own ACCBank.

While he has indicated some initial international interest in buying the bank, it is difficult to see what value a small institution like ACCBank offers to overseas buyers.

National Australia Bank, which owns National Irish Bank and Northern Bank, might derive some benefit from acquiring ACCBank as it would add further scale and a branch network in the southern region to sell its products.

NAB has been focussed on securing an acquisition in the UK although its options have narrowed given the spate of consolidation in that market. It is likely to take a look at ACCBank in this regard.

Otherwise it is likely that ACCBank will end up in the hands of one of the major domestic players. First Active is also likely to take a look to see what synergies and benefits it could add to the former building society. AIB, Bank of Ireland and Irish Life and Permanent are also expected to look at ACC's books.

ACC's new management has restructured its operations and is reporting that in the current year it is managing to achieve greater profitability from its retail banking business as a result of these changes.

The bank has announced one of the most competitive variable interest rate options for investors who wish to avail of the Special Savings Investment Account scheme backed by the Government. Its success will be important in attracting a new owner by year-end.