Bank Guarantee (2008)

(back to main, banking, 2008)

In September 2008 Ireland raised its longstanding deposit-insurance limit of 20,000 euros to 100,000 euros, the second-highest in the EU behind Italy's limit of 103,000 euros (source).

In October 2008, days after Lehman Briothers collapsed, the Irish Government implemented a guarantee for Irish banks' deposits and debts for two years, so as to calm investor concerns about Irish Banks (source) worried about its financial sector’s exposure to real estate..

The guarantee of about 400 billion euros was scheduled to last for two years and covered liabilities at Allied Irish Banks Plc, Bank of Ireland Plc, Anglo Irish Bank Corp., Irish Life and Permanent Plc, Irish Nationwide Building Society and the Educational Building Society.

The guarantee was extended in October 2010.

The Deposit Guarantee Schemes Directive (DGSD) is the EU directive that regulate bank guarantees.

References

http://www.finance.gov.ie/viewdoc.asp?DocID=5466