AIB and Bank of Ireland will be forced to clear out much of their boardrooms at the end of the year following reviews of their risk management and governance standards.

The Central Bank, now incorporating the Financial Regulator, will insist on substantial cultural and personnel changes at the top of the country's two biggest banks.

The move is part of a multifaceted strategy to re-establish the institutions on a sound footing – and to reassert regulatory control – following the banking crisis, which saw a number of governance and management failures at the country's top banks.

It follows the resignations of the top two AIB directors, chairman Dan O'Connor and managing director Colm Doherty, last week following the revelation their bank would need an extra €3bn in capital to meet regulatory minimums by the end of the year.

The revised figure put an end to the bank's plans to remain out of government control.

Both AIB and Bank of Ireland are undergoing risk and governance reviews by third-party consultants on the orders of the Central Bank. When those exercises are finished, the two banks are to discuss with senior regulatory officials how they can improve oversight and controls. This is expected to result in a widespread "refreshing" of directors, informed sources said.

Earlier this year the Financial Regulator sent a series of "dear chairman" letters to the boards of the banks admonishing them for their lack of strategic direction and for failing to implement higher standards of governance and corporate oversight.