Ananova:

British bankers have slammed the Irish government's move to guarantee deposits at six major banks in the face of the global financial crisis, saying it is anti-competitive.

Ireland's government is set to push through an emergency law designed to protect people's savings in the institutions.

The British Bankers' Association said the move put banks not covered by the move, particularly in Northern Ireland, "at a competitive disadvantage".

"While we support proposals aimed at re-reintroducing stability to the financial markets, we need fair play for financial institutions across Europe," the BBA said in a statement.

France, however, which holds the rotating six-month presidency of the EU, is reported to be considering a similar move.

The EU called for a shake-up of banking deposit insurance schemes after the Irish government announced its proposal.

European Commission chief Jose Manuel Barroso said there needed to be more "consistency" across Europe.

EU Competition Commissioner Neelie Kroes went further, saying: "I make a plea to national governments today not to act unilaterally but to continue the practice of involving the Commission. It is a must."

Some Irish banks have told Sky News they have been inundated with calls from customers now asking to transfer their cash to Irish branches.

A senior Irish stockbroker said the Irish pledge had triggered a flood of cash from British businesses to Irish banks.

The government said Allied Irish Banks, Bank of Ireland, Anglo-Irish Bank, Irish Life and Permanent, Irish Nationwide Building Society and the Educational Building Society would all protect customers' savings.

Of these, Allied Irish Bank, Anglo Irish Bank and Bank of Ireland all have branches in the UK.

These will be covered by the Irish government's guarantee and may be easier to access and open for people living outside Ireland.

The pledge, which covers up to 400bn euros (£316bn) of liabilities, is more than twice the country's annual gross domestic product.

Taoiseach Mr Cowen insisted the emergency legislationwas vital to stabilise the country's banking system.

Finance minister Brian Lenihan denied the two-year safeguard of deposits and borrowings in the six biggest banks was a "bail-out" and said taxpayers would be fully protected by the deal.

The government hopes the move will see financial shares regain strength in the Dublin stock market.

Meanwhile, the European Commission has warned European banks to tie up more cash to cover future risky operations by limiting how much they can lend to one party.