Danske Bank, the owner of National Irish Bank, said deposits are increasing as clients move funds from competitors including Bank of Ireland and Allied Irish Bank.
"In the current circumstances, we have been seeing an increase in our deposits," said Simon Fullam, a spokesman for Danske's Irish unit. He declined to give a figure. "Whilst the uncertainty of depositors in the Irish banks is understandable, there are deposit guarantees in place and it is important that people do not get carried away."
Taoiseach Brian Cowen said today the government is in talks for a loan of about €85 billion from the European Union and the International Monetary Fund. The nation's banks are fully supported by the European Central Bank, he said.
Even so, Ireland risks a "major bank run" as a bailout faces a "massive execution risk", said Mohamed El- Erian, chief executive officer at Pacific Investment Management, in an interview with Bloomberg yesterday.
Rabobank Group's Irish online banking unit has had "a considerable increase in the number of calls and new account applications over recent months," according to Geraldine McCarthy, a spokeswoman for the bank. "Much of this is due to our AAA rating, as part of the Rabobank Group."
Ulster Bank, which is owned by Royal Bank of Scotland Group, isn't experiencing "any unusual activity" and "deposits are stable", Naomi Steen, a spokeswoman for the unit, said today.
"The local Irish banking sector has some serious issues the Government is working on to solve," said Thomas Borgen, head of Danske Bank's international operations in Copenhagen, in an e-mailed response to questions today. "We have no view on the possibility of a run on Irish banks."
Corporate deposits at Bank of Ireland and AIB have fallen by a combined €22 billion since the end of June, according to estimates from Emer Lang, an analyst at Dublin-based Davy.
Bank of Ireland and AIB plunged in Dublin this week as the country's financial authorities prepare further capital injections into the banks.
Bloomberg