Minister for Finance Brian Lenihan has said Irish banking customers’ deposits are secure despite the global financial crisis.
Banking stocks surged on Irish markets today after the introduction of a ban on short-selling and discussions by US officials on a plan to help banks remove their bad debts. Stocks all over the world have risen on the news of the plan.
Speaking in Dublin this morning, Mr Lenihan said: “Irish depositors can rest confident in the knowledge that their deposits are secure.
“The banks are well-funded, they have the backing of the European Central Bank. There is no question of any danger to Irish deposits.”
He said he was prepared to review the system where the Government guarantees 90 per cent of deposits up to a limit of €20,000 amid calls for this limit to be raised.
“But I don’t believe it is a matter of fundamental importance today because the Government is prepared to ensure the stability of the whole financial system,” Mr Lenihan added.
Shares in the main Irish banks soared today with the value of Anglo Irish Bank and Bank of Ireland stock up by over a third by lunchtime
The ban on short-selling and developments in the US to help banks, coupled with reports that Anglo is considering a bid for Irish Nationwide, have powered Irish banking stocks to record one-day gains.
At 1.10pm the Iseq index of Irish shares was up 13.8 per cent higher at 4,272, a rise of 520 points. Earlier, the index had been ahead by over 25 per cent.
Leading the way up was Bank of Ireland which saw its shares rise by over a third or 37 per cent to €5.20, a rise of €1.42 in the day. Allied Irish Bank was ahead over 28 per cent by lunchtime at €6.71. Both stocks had traded up over 50 per cent earlier today. Anglo Irish Bank stock, which earlier had rocketed by up to 120 per cent, was trading up 35 per cent at €5.88. Irish Life and Permanent stock was up over 32 per cent at €6.75.