The Irish Bankers Federation has dismissed Department of Finance estimates that £1.7 billion is lying in dormant bank accounts. Such speculation is "greatly misplaced", said the organisation.

The figure is substantially reduced if a more conservative definition of dormancy is used. The amount lying in accounts that have been inactive for 15 years is only £139 million and the figure falls even further to £53.6 million when a 20 year cut off is applied.

The Minister for Finance will shortly bring proposals to Government that will allow the state access to the money in dormant accounts.