Depending on your perspective, today is either D-day or a potential apocalypse for the Irish banking sector.

The government is to unveil new capital requirements for Irish banks as it officially transfers bad property loans across to NAMA, and is expected to reveal further nationalisation in the sector. Sadly, this looks like being very bad news for jobs.

When markets close today, the government will announce the “haircut” required to transfer loans across to the “bad bank” – expected to be between 35%-70% for some lenders – and could take a 70% stake in AIB (up from the current 25%), and a 40% holding in Bank of Ireland.

The Irish Bank Officials Association suggests all this is likely to lead to further “major cuts in staff numbers” at Irish banks, which have already lost 6,000 employees over the last 18 months.

Davy Stockbroker’s Emer Lang concedes that there could be a “tougher line on costs”, which is likely to result in further job cuts.

Of course, Ireland’s banking sector has already seen its fair share of redundancy announcements, with Anglo Irish, RBS and Lloyds all reducing headcount. There’s also likely to be significant fallout from the proposed merger between EBS and Irish Nationwide, suggests Oliver Gilvarry, head of research at Dolmen Securities.

Working for a (nearly) nationalised bank may also not be a very appealing prospect. In the UK, for instance, Royal Bank of Scotland (60% state-owned) has been losing investment bankers in their droves as they look for other, more lucrative, options.

Of course, workers in profitable capital markets functions in Ireland’s domestic banks shouldn’t really fear for their jobs, but they may not have a lot of other options available to them locally should they look for pastures new.

One recruiter currently hiring for senior roles within the domestic banks tells us that candidates are reluctant to put themselves forward “until the real implications of NAMA become clear”.

Most banks are heavily retail focused, and here, sadly, international banks – such as ACC Bank, RBS and Ulster Bank – have been pulling away from Ireland, meaning alternative opportunities aren’t exactly plentiful. Talent could therefore look elsewhere.

“Where Irish banks are likely to lose out is in the recruitment and retention of junior staff,” says Gilvarry. “Graduates and those with a couple of years experience under their belts will be looking to the likes of London for new job opportunities.”