The chief executive of the EBS Building Society, Fergus Murphy, has said the new Government bank guarantee will be much more expensive that the old one.
He said this - combined with the higher cost of deposits - would put more pressure on bank profit margins and could lead to upward pressure on standard variable mortgages or SVRs. But he said EBS had no immediate plans to put up rates.
He also said banking needed to make sure the mistakes of the past were never repeated, and he could understand why many members of the public were fuming with bankers.
