The government has rushed to put in place a new bank deposit protection scheme, insuring savings for up to €100,000, as it tries to dampen down growing fears of a run on an Irish bank as the international financial crisis deepens.

Finance minister Brian Lenihan yesterday admitted some consumers had started moving money out of certain institutions in recent days.

Fear of a potential "systemic" threat to the entire Irish bank sector was also behind last week's takeover talks between Anglo Irish Bank and Irish Nationwide.

Deposits at some Irish banks have been hit in recent weeks with large numbers of savers moving their money to state-backed accounts with An Post and banks backed by foreign regulators, such as National Irish Bank and Rabodirect.

There have been concerns in banking circles that a decision by two leading debt agencies to slash their ratings on Irish Nationwide in the last fortnight may prompt some savers to withdraw their funds from that society.

However the company says it has a strong underlying financial strength.

Finance minister Brian Lenihan has sought to play down any fears of bank collapses.

"I want it to be known that the government is confident about the strength and resilience of the Irish financial system,'' he said yesterday.

Bank and building society deposits were previously insured for the EU minimum €20,000, but the increase to €100,000 leaves Irish savers better protected than savers in most other European countries. Lenihan yesterday also included credit unions in the protection scheme.

Although the Central Bank will fund the scheme for an unspecified "interim" period, hard-pressed Irish banks will eventually have to stump up about €2.5bn – or 1% of deposits – to pay for the fivefold increase in coverage at a time when most are working hard to retain capital to provide for expected bad debts.

Meanwhile, it has emerged that Irish Nationwide sold its majority stake in Clearstorm, its British property development company, last year for a profit of €40.5m.

The Irish Nationwide group sold €134.5m of investment property in its last financial year, including its stake in Clearstorm, according to its annual report.

A spokesman for Irish Nationwide and Ballymore, which owned the minority of Clearstorm and now describes it as its subsidiary, did not return calls seeking comment. Irish Nationwide continues to own three Irish property companies: Vernia, Cedarclose and Pangrove.