The Government has further reduced its stake in Bank of Ireland.

The Minister for Finance has now reduced the shareholding to 8.99pc from 9.95pc, according to a stock exchange announcement on Thursday.

The bank is on track to return to full private ownership by next summer after the Department of Finance earlier this month extended the timeline for selling down its stake from January to at least May 2022.

The longer timeline will give the National Treasury Management Agency, which manages the State’s investment in the bank, at least five more months to continue reducing the Government’s shareholding.

The removal of the Government from Bank of Ireland’s shareholder register could ease competition concerns about the sector with the impending departures of Ulster Bank and KBC Bank Ireland.

The Competition and Consumer Protection Commission is conducting a deep-dive investigation into Bank of Ireland’s purchase of KBC’s consumer banking business.

Minister for Finance, Paschal Donohoe, first announced that the Government would sell its stake in the bank in June. At the time he said the selling of the shares was due to end no later than January 7 next year.

The State remains a majority shareholder in both AIB and Permanent TSB.