BARCLAYS, the British clearing bank, is to open its first office in Northern Ireland in the latest sign of blossoming business confidence following the ceasefires.

The bank confirmed that it would be up and running "in the first half of the year", providing trade finance, treasury and general lending services.

The bank's establishment of a local operation reflects the improved security environment and economic growth, and is part of a larger rethink of Barclays's Irish strategy: for the first time, the bank is treating the island as one entity.

Until now, its Northern Ireland business has been handled from Liverpool, while its Dublin operation was part of the BZW investment banking subsidiary. Now both operations will report to the British clearing head office.

Barclays enters a banking scene dominated by National Westminster - through its locally owned Ulster Bank - and National Australian Bank, which owns Northern Bank. Also represented are the Bank of Ireland and Allied Irish Banks.

The state owned specialist investment bank, ICC, has also announced plans for its first branch in the North, together with Equity Bank, a small merchant bank owned by Scottish institutions.

The rate of savings in Northern Ireland, at around 16 per cent, is twice that of Britain.