A decision on the future ownership of TSB Bank can be expected over the coming months. In an interview with The Irish Times, the new Minister for Finance, Mr McCreevy, said he would deal with the issue over the coming months. The trustees of the bank have been concerned with the long delay in finalising a decision.

The previous government failed to progress the matter and many analysts felt it was because of traditional Labour antipathy to privatisation, as well as division between the parties on how ACC and ICC banks should be treated.

The new Fianna Fail and Progressive Democrat Government is more positive on both strategic alliances and even some privatisations.

The National Australia Bank, through its Irish subsidiary, National Irish Bank, has put in a formal bid for the TSB as has Ulster Bank. Irish Nationwide Building Society has also declared its interest. The Minister also insisted he would not speculate on any future revaluation of the pound, keeping to his line that a buttoned-lip is a must for all ministers for finance.

Nevertheless, the pound continued to be under pressure at the top of the ERM grid.

It has spent most of this week at close to 13 per cent above the weakest currency in the system, with little room for further appreciation.

However, some of the pressure came off yesterday as profit-taking set in for sterling.

The pound finished 12.29 per cent above the French franc, the weakest currency in the system.

It closed at 89.73p against sterling from 89.62p on Wednesday and at DM2.6899 from DM2.7003. See page 3