Irish Banking Sector Takes Major Hit

In recent news we have seen Danske Bank, Ulster Bank & ACC Bank hitting headlines giving clear signs of desperation.

With Danske Bank announcing to terminate its operations, Ulster Bank radically downsizing their operations in Ireland (another terrible blow to Irish banking considering that Ulster Bank is the 3rd largest bank in Ireland following Bank of Ireland and AIB) and ACC Bank (owned by Dutch Rabobank) to retire its banking licence. One must wonder how much is Ireland in denial of its banking crisis? exit

The actions undertaken by Danske and Acc bank are the result of “the on-going recession in Ireland”. Also the government levy put on banks which was announced this month and will raise €150m a year, probably did not help the foreign-owned banks.

By creating the “Bad Bank”, RBS have now made a commitment to sustain business in Ireland, to do so however, Ireland would have to provide an economic environment that would support a sustainable business model that will be implemented by the bank.

These banks that have experienced recessions and terrible economic times, they have gone through the difficulties of restructuring, branch closures, job losses, etc. if the downfall continues, the outcome is inevitable; the economy is not going to support its operations and a sense of rationality comes with it, if your business is at a loss, what would you do? Continue to suffer massive losses or close down? It is now a battle of survival of the fittest.

What is the future for Irish banking?

The foreign banks prompted Irish business organisations to warn the banking sector is still “not fit for purpose”, given that lending has not resuscitated to adequate levels.

Banking lending

One must also take into context that its not just economic decisions that impact on future banks settling in Ireland , political stability and risk are also important, a prime example would be Italy and its political ‘cavalier’ Berlusconi, ‘cantering’ Italy into a less appealing country for future investors.

Banks cr

A saying comes to mind that was frequently used, that if something was certain/ a promise, a phrase like the following would be used: “Like money in the bank”.

Through recession and austerity people learn that banks are not safe, nor to be trusted. Banks created the crisis, costing tax payers millions and in some cases their savings.

People should always be prudent where they put their pensions or savings, whether it be a bank, post office, credit union or safer alternative.

Do your homework on the history & performance of the company before you trust them with your hard earned savings.

About Bill Anderson

Bill is a qualified financial adviser (QFA) and also a qualified accountant (FCCA).
This entry was posted in Deposits, Financial Services, Ireland, Savings and tagged , , , , , , , , , , , , . Bookmark the permalink.

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