influential British magazine Investors Chronicle has told its readers it might be wise to switch their deposits out of Irish banks in case the government here cannot meet its obligations to overseas investors.

The magazine, which describes itself as a daily guide to investing in shares and other assets, has received a steady flow of queries from readers about the position of Irish banks, in particular nationalised lender Anglo Irish Bank.

Investors Chronicle, which is widely read by equity analysts, said that while the Irish government has guaranteed deposits, "nobody knows what will happen if the Irish economy deteriorates further". The magazine referred to the possibility that Ireland might not be able to meet its obligation to overseas retail depositors. "This is not generally viewed as very likely, but it is possible and is an increasing concern as Ireland's financial position is worsening."

Despite a widespread campaign to talk up the economy's prospects, British publications continue to doubt the government's ability to control the situation.

The Mail on Sunday has also suggested British depositors should avoid Irish banks. Investors Chronicle told readers a few weeks ago that the UK guarantee probably meant the best place for depositors' money was at home. Some of the magazine's readers have also pointed out that Bank of Ireland runs the retail deposit network of the UK Post Office.