NIB applies for cover under €100,000 indemnity scheme

NATIONAL Irish Bank has applied to the Financial Regulator to have its deposit protection brought in under the new €100,000 scheme announced last Saturday by Finance Minister Brian Lenihan, to ease growing investor fears about the stability of the Irish banking sector.

Until the change, which came into effect on Saturday, NIB, which is a subsidiary of Danish banking group Danske, provided more than €40,000 security on deposits to investors under the Danish scheme, which applied also to its Irish customers. Where the protection for deposits in other countries is better than the Danish plan, it has been Danske’s policy to comply with the practices of the host country.

It is understood that the application to bring Dankse into the new arrangements here was submitted to the Financial Regulator yesterday by NIB.