The Government has published legislation giving it sweeping powers to reform and downsize the banks.
The Credit Institutions Stabilisation Bill - which is part of the loan deal agreed with the EU and IMF - also includes an amendment to prevent the payment of bonuses within the banks.
It is expected to pass all stages in the Oireachtas by the end of the week.
Meanwhile Finance Minister Brian Lenihan said the State will vigorously contest any legal action if AIB staff at the bank go to court to seek payment of their bonuses.
Last night Minister Lenihan wrote to AIB bosses saying the Government would not fund the bank's recapitalisation if the bonuses were paid. The bank's board then rowed back on the decision.
Fine Gael has described the Government's handling of the affair as "gross ineptitude".
But the Minister said he is confident the Government is legally covered if any AIB staff take legal action.
Tourism Minister Mary Hanafin meanwhile insisted the affair surrounding the bonuses is not embarrassing for Government.
"It hasn't been embarrassing but it was an issue that really annoyed the public," Minister Hanafin said.
"So it's good that we were able to take a decision that allowed the bank not to pay it."