The creation of a so-called 'super mutual', made up of EBS, Irish Life & Permanent (IL&P) and Irish Nationwide, has been delayed.

According to industry sources, it will be months before finance minister Brian Lenihan, turns his attention to the three institutions.

Lenihan's preferred outcome, as stated in March, is to create a "third pillar" of Irish banking to stand alongside AIB and Bank of Ireland.

However, talks between the government and the three institutions have been suspended while Lenihan hammers out the details of the National Asset Management Agency (NAMA), which will mostly affect AIB, Bank of Ireland and possibly the nationalised Anglo Irish Bank.

Sources in both EBS and IL&P told The Sunday Tribune they would not agree to a link-up involving Irish Nationwide unless something was done about its toxic assets.