Noonan announces end of Bank Guarantee scheme
on 26/02/2013 16:49:42
The scheme, which was put in place four years ago to protect deposits and other liabilities, imposes high costs on the banks which have to pay for the protection offered by the State.
Mr Noonan said: "The time is right to return to normal banking," as he announced an end to the guarantee.
It will have no impact on people's deposits up to €100,000 which are covered by a separate scheme.
The Finance Minister said the guarantee was controversial, but now it is over.
He said: "The guarantee has been there for some years now and we feel the time is right and the banking system in Ireland is normal enough to proceed now without a guarantee.
"We want to get back to normal banking without artificial aids or supports."