The Irish government announces that deposits in banks, building societies and credit unions are guaranteed by the state up to the sum of €100,000.
The measures were introduced by Finance Minister Brian Lenihan in a move to reassure depositors after weeks of international financial turmoil.
The guarantee of one hundred thousand euro per depositor, per institution, is five times higher than the previous safeguard.
For a couple with a joint account, they will now have a guarantee of €200,000.
Minister for Finance Brian Lenihan says that the government is confident about the security of all deposits in Irish banks and wants to reassure consumers that their money is safe and absolutely legally guaranteed by the state.
We are determined to maintain the stability of the Irish banking system.
Pat Farrell of the Irish Bankers' Federation explains that the money underpinning the scheme is provided by the banks themselves with the Central Bank acting as the holder of the funds.
The Irish Deposit Guarantee is now the second highest in Europe.
For Fine Gael finance spokesperson Richard Bruton, there is also a need for action on reporting and accountability of the banks.
...reassurance that the banks are being forthcoming about all of bad debt and putting in place the necessary steps to meet those challenges.
An RTÉ News report broadcast on 20 September 2008. The reporter is David Murphy.
