Posted at 1pm, server time issued announced in Dev & Ed section today (see here)
The Government has decided to increase the statutory limit for the deposit guarantee scheme for banks and building societies from 20,000 to 100,000 per depositor. The cover will apply to 100% of each individuals deposit. This guarantee level will also apply to credit union savers.
Announcing the decision, the Minister for Finance, Brian Lenihan TD, said I want it to be known that the Government is confident about the strength and resilience of the Irish financial system. The Government is committed to the stability of our financial system, so that money placed with an Irish credit institution would not be at risk. As I said yesterday, the Irish Government wants to protect the whole financial system, secure its stability and ensure that all deposits in Irish banks are safe.
The Minister added the Central Bank and Financial Regulator have stressed the soundness and stability of the Irish financial system. This measure provides additional reassurance to depositors in Ireland that their savings are safe. The new guarantee level is now among the highest in the EU.
The Minister also commented that notwithstanding the uncertainty caused by the turbulence in international financial markets over the last week, it is encouraging that the banks have retained the confidence of their customers.
This measure has been under consideration for some time, and the Minister believes that this is the appropriate time to make the announcement.