Ireland's largest financial institution, Allied Irish Banks PLC, announced Monday it wants to raise an extra €1.5 billion ($1.95 billion) this year to regain the confidence of global creditors.

Investors welcomed the news. Allied Irish shares led the Irish Stock Exchange higher, soaring 16% to €1.00 in early trade.

But analysts cautioned that Allied Irish's renewed need for cash reflected deepening international concern over the ability of Ireland's banks - and its government - to shore up their debt-saddled books. They said the move raised doubts over whether the government's bank bailout efforts to date are enough.

In January, the government nationalized specialist lender Anglo Irish Bank to prevent its collapse amid a loan-hiding scandal, and in February announced plans to buy €3.5 billion stakes in both Allied Irish and the nation's second-largest financial, Bank of Ireland, which both face billions in potential losses from property loans gone bad. At the time, Allied Irish insisted it didn't need state aid.

"Since then, market and public uncertainty about our capital adequacy has persisted," the Dublin-based bank said in its statement to the Irish Stock Exchange.

Allied Irish said its internal risk analysts have been exploring worst-case scenarios with Finance Minister Brian Lenihan and have concluded that the bank needs to raise its cash reserves by ¤5 billion this year. That figure includes the government transfusion, which still faces shareholder approval 13 May, and an extra €1.5 billion to be generated potentially by a share flotation and asset sales.

"Potential sources of this capital include the disposal of assets, and marketable assets will be considered as part of this process. This commitment represents a reappraisal of our previous view in relation to asset disposal," Allied Irish said.

The bank didn't specify any assets it might put on the block. Allied Irish has the biggest branch network in Ireland; a 24.2% stake in M&T Bank Corp. of New York; and a 70.5% holding in Poland's second-largest bank, Bank Zachodni WBK.

Kevin McConnell, an analyst at Bloxham Stockbrokers in Dublin, said Allied Irish's move was unexpected and raised new questions about whether the government would need to increase its €3.5 billion offer to both Allied Irish and Bank of Ireland. "That's a possibility particularly after this announcement," he said.

The government itself is mired in a deepening debt, and earlier this month unveiled an emergency budget that sharply raised income taxes. Credit rating agencies recently have increased both the government's and banks' risk profiles, which has driven up their borrowing costs.