Darling must safeguard UK banking system now

David Kuo, Head of Personal Finance at money website Fool.co.uk, says: "The Irish government has done the right thing to stand behind its financial institutions. Under the terms of the guarantee, savers and bond holders will be fully protected.

"It is high time that Chancellor Darling stops dithering and safeguards the UK banking system too. The current Financial Services Compensation Scheme, which only provides limited protection per banking license, is not only out of date, but is unnecessarily complicated.

"Fool.co.uk has long called for a limitless guarantee to help restore confidence in our banks. To restrict compensation to just £35,000 while claiming that the banking system is robust is confusing for consumers. If UK banks are completely robust then Chancellor Darling must back them completely."