Some British banks could enjoy the government guarantee

When the Irish government announced that the savings in Ireland’s biggest banks would be guaranteed 100 percent, the British banks complained strongly that the Irish banks had been given an unfair advantage. So when Bank of Ireland, Allied Irish, Irish Nationwide building Society, Irish Life & Partnership and Educational building society began to enjoy the full state guarantee, British depositors, especially companies began transferring funds across into the Irish banks due to the present global banking crisis.

If the move goes ahead it would be a great advantage for HSBC, Barclays and the Royal Bank of Scotland, all which have a large presence in the Republic of Ireland. Specifically RBS who are one of Ireland’s biggest banks through its Ulster Bank brand.

Brian Lenihan, Irish Finance Minister said the Irish government was already in talks with British parent banks and other foreign-owned banks to discuss possible ways into the system.

Most banks can only guarantee £35,000 of their customer’s money, so if the state guarantee did go ahead it could cause even more problems within the UK saving’s market, with banks like Northern Rock and National Savings & Investments enjoying the state guarantee.

Read the full article: telegraph

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