Customers are given reassurances

REACTION:PERMANENT TSB chief executive David Guinane has stressed that the suspension of shares in Irish Life & Permanent (IL&P) has no impact on its deposit and mortgage customers.

Mr Guinane said customer deposits were guaranteed, and that this would not change regardless of the outcome of the Central Bank’s stress tests.

“Clearly these are difficult days for the entire banking industry in Ireland, but I can absolutely reassure customers – including those customers who have recently joined us from Irish Nationwide – that nothing that may occur over the coming days will in any way change the deposit guarantee,” he said in a statement.

The Central Bank is due to announce the results of the Prudential Capital Assessment Review (PCAR) and Prudential Liquidity Assessment Review (PLAR) today.

The Deposit Guarantee Scheme guarantees amounts up to €100,000 per depositor, per institution, and the Government’s eligible liabilities guarantee (ELG) scheme guarantees amounts over €100,000.

The Irish Brokers Association (IBA) also sought to reassure customers of Irish Life, the life and assurance arm of the ILP group.

“Client funds, whether in investment products or pensions, are segregated and ring-fenced from the day-to-day banking operations of Permanent TSB,” said the IBA’s chief executive Ciaran Phelan.

Irish Life’s retail division chief executive Gerry Hassett suggested yesterday that the group was mulling over the sale of the cash-rich life assurance arm.

IL&P’s shares were suspended temporarily before the opening of stock markets early yesterday morning following a 45 per cent plunge in its share price during Tuesday’s trading session.

The shares are due to resume trading tomorrow, by which time the extent of the bank’s capital shortfall will be clarified.