A pledge by the Irish government to guarantee all deposits in six Irish banks and building societies – a number of which have a branch in the Isle of Man – has been ratified.

Earlier this month, the Irish government agreed to introduce legislation to ensure savers' deposits were totally safe for two years if an Irish bank collapsed.

The move sparked an outcry on the lines of unfair competition and a report flood of funds into Irish banks.

The Minister for Finance Brian Lenihan has signed an order confirming the six main Irish owned banks will be covered by the State's deposit guarantee scheme.

AIB, Anglo Irish Bank, Bank of Ireland, EBS Building Society, Irish Life & Permanent and Irish Nationwide are the banks designated.