Northern Rock to pay bonuses

The 100 percent guarantee, introduced in September 2007 to stop a run on the bank, had been under review since the start of the year. Its removal is key for suitors eying Northern Rock, as buyers will be keen to see that deposits stay in the bank.

Hoffman said he had not seen "abnormal levels of activity" since the decision to lift the guarantee.

(Editing by Will Waterman, David Holmes and Karen Foster)