Irish Government 'sympathetic' to RBS plan

Published on Thursday 2 October 2008 09:55

ROYAL Bank of Scotland received a boost today after the Irish Government said it was "sympathetic" to its application to have savings with its Irish subsidiary guaranteed.

The Irish Government announced earlier this week that it will guarantee deposits in all six of its major banks.

RBS is now pressing for its Irish subsidiary Ulster Bank to be included in the guarantee.

Brian Lenihan, Ireland's finance minister, said: "They have made an application to the government and we are examining it and we are sympathetic to it because of their large branch network."

RBS, HBoS and National Irish owner Danske Bank have complained to the Irish Government that the scheme gives competitors an unfair advantage. Analysts said that Anglo Irish Bank is set to become a "big player" in Scotland.

It is reported that envious investors yesterday withdrew hundreds of pounds in UK banks and instead put them in Irish banks and the "safer" nationalised Northern Rock.

RBS shares increased by 1.7 per cent in early trade today, to 183p.