Ulster Bank chief executive Jim Brown is reported as being in talks with the Financial Regulator about how to apply compensation to customers affected by the recent technical problems at the bank. Details of the compensation scheme are expected to be announced shortly.

Ulster Bank is set to offer compensation to customers affected by recent technical problems

Mr Brown estimated that it would take several more weeks to finally clear a backlog of transactions built-up during the technical fault.

Most Ulster Bank customer accounts are now up-to-date, although a “small percentage” of outstanding transactions were still being processed.

Ulster Bank has promised to refund all fees and charges that had been incurred by its customers or those of other banks as a result of the computer glitch that occurred last month, including overdraft fees and interest, late payment fees and interest on mortgages, loans and credit cards, and interest wrongly charged on late payments.

Customers would also be awarded all the interest on missing savings or current account payments, including interest on cash customers withdrew from savings accounts when wages were not paid on time.

Credit ratings would also be protected, the banks said.