Shares in AIB and Bank of Ireland closed higher again last night as international investors took a relatively benign view of recent developments at the two banks.

Dealers reported no rush to sell shares in either bank as investors in Britain and the United States returned to work after a bank holiday.

"They didn't seem to be too concerned about the whole thing," one trader noted.

Volume in both stocks was relatively light as AIB shares added 16 cents, or 1.35 per cent, to 12.03, while Bank of Ireland closed 14 cents, or 1.39 per cent higher, at 10.19.

Dealers said that talk of a takeover was helping to underpin the share prices of both banks but most felt there was little substance to it.

"You can't rule it out but the feeling is that it is not likely at the moment," the trader said.