Call to guarantee bank deposits

Mr Salmond wants to see a guarantee on all bank savings

The first minister has urged the UK Government to provide an unlimited guarantee for sterling bank deposits.

It comes after Alex Salmond held what he described as "constructive" talks with Chancellor Alistair Darling.

The meeting was one of a series Mr Darling had with other parties to discuss the current financial crisis.

Mr Salmond told BBC Scotland that guaranteeing deposits would be a "very strong declaration of confidence" at a time of great uncertainty.

Prime Minister Gordon Brown has declined to offer an unlimited guarantee but has pointed out the government had not let any UK depositor lose out.

'Underpin confidence'

The first minister is recommending measures "similar but not identical" to action being taken in Ireland, which he believes would have the three benefits of instilling confidence, protecting depositors and preventing runs on individual banks.

The guarantee would last until the present "turbulence" vanished from the financial system.

Mr Salmond said: "I think it would be welcome to underpin sterling deposits, to offer that guarantee to underpin confidence.

"This would make sure that we can get out of this period of great instability and then move on to arguing and debating how we can get the real economy moving, which is the underlying thing we've got to do.

"It's not just about stopping going off the precipice, it's about making sure we can get the economy moving, with demand and confidence."

The Irish government has promised to guarantee all deposits in six Irish banks and building societies, which also covers branch customers in Northern Ireland.

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