Irish Intercontinental Bank has set up a $500 million (£342 million) multi-currency European commercial paper facility to diversify its funding base. A spokesman said the move gives the bank further access to international capital markets and new non-domestic investors, deepening and diversifying its funding sources.

The bank has no immediate need for the funds and no particular plan for their use, according to associate director Mr Terry Sullivan. But he said the funds, which will be drawn down as required, would cost less than the bank's current average cost of funds on the domestic market.