... Banking

• Central Irish Bank to adopt ‘intrusive’ approach

The Central Bank has published its plans for sweeping reforms of regulation of financial institutions. The ‘Banking Supervision: Our New Approach’ report outlines how the Central Bank will introduce a more ‘intrusive’ approach to overseeing institutions, as well as introducing credit limits for consumers. Read the Central Bank’s report The report says that while banks [...]

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• Irish Banks want homes as collateral – ISME

Business leaders have called on the Central Bank to investigate claims that banks are illegally asking for family homes to be put up as collateral for loans. ISME – the organisation representing small and medium enterprises – has carried out a survey which it says indicates that banks are continuing to refuse lending to a [...]

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• Ireland – 4% of Permanent TSB’s mortgages in arrears

One of the biggest mortgage lenders in Ireland has said the number of people who are in arrears for more than three months has continued to rise since the start of the year. Irish Life & Permanent, which is loss-making, said there were signs the number of people starting to get into difficulties with their mortgage [...]

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• Bank of Ireland EBS raise interest rates

The Bank of Ireland and the EBS have announced they are to increase their standard variable rates for mortgage holders. Bank of Ireland said it is raising its standard variable rate by 0.5%. The rate change is effective from 16 April. Existing Bank of Ireland mortgage holders on standard variable rates will see repayments increase by between [...]

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• AIB to set aside 4.3bn for bad loans

AIB has increased its estimate of how much it will have to set aside to cope with bad loans this year to €4.3bn.In a trading update issued to the Irish Stock Exchange, the bank blamed the worsening economic conditions in Ireland for the bigger charge. It also said mortgage arrears in Ireland were climbing and stood [...]

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• Bankers criticised over high risk strategies

The Church of Ireland Primate has criticised some bank directors and executives for indulging in unnecessarily high risk strategies in the current economic crisis and said they should consider their positions.Archbishop Alan Harper told church members there was an urgent need for a completely new ethic in international banking, based on a powerful regulatory system. Church [...]

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• Former Anglo chair given millions in loans

  Former Anglo Irish Bank chairman Seán FitzPatrick was given tens of millions worth of sterling and dollar loans, it has emerged. Irish Nationwide gave tens of millions worth of sterling and dollar loans to Mr FitzPatrick as part of his loan transfers between the two institutions to conceal up to €122 million in borrowings from Anglo [...]

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• Irish Banks to delay home repossessions

 Bank of Ireland and AIB Group have agreed to delay issuing repossession orders on homes for 12 months as part of the Government recapitalisation plan. The banks have told Government that delaying repossession proceedings for those in arrears on their mortgages for any longer would be viewed negatively by investors. The issue of mortgage arrears has become [...]

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• Review of top bank execs needed - Kenny

Fine Gael Leader Enda Kenny has said the pay and actions of top banking executives must be reviewed before the Government’s finalises its €7bn recapitalisation plan for Bank of Ireland and AIB. Speaking on RTÉ Radio’s Morning, Mr Kenny said taxpayers’ money should be carefully employed Last night, Minister for Finance Brian Lenihan said there was much [...]

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• The Central Bank Economy to shrink by 4.7%

 The Central Bank says it expects the economy to contract by 4.7% this year, as Ireland continues to be impacted by global recession and falling demand. In its latest economic forecast, the Central Bank says the contraction will lead to significant job losses with 100,000 fewer people working by the end of the year. The bank says [...]

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• Ireland Mortgage lending at lowest since 1986

The latest figures from the Central Bank show that weakness in residential mortgage lending persisted in November.The Central Bank says that mortgage lending rose by just €96m in November. This compares with an average monthly increase of over €850m between January and September of this year. It also compares with an average monthly increase of almost €2bn [...]

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• Ireland Mortgage growth slumps to 22-year low

 Figures from the Central Bank show a dramatic slump in the growth of residential mortgage lending in October. The annual rate of growth in October fell to 7.6%, the lowest figure since 1986. The Central Bank described the mortgage figure as ‘exceptionally weak’. The amount of money lent for mortgages rose by just €26m during October, compared with [...]

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• Citigroup to get 300bn rescue plan

  The US government has agreed to a $306bn (€244bn) rescue plan for Citigroup in the latest attempt to bolster a financial services industry in turmoil. Citigroup’s package may also prove a template for other banks that are expected to face growing losses as economies worldwide sink into recession. Credit losses once concentrated in mortgages are already bleeding [...]

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• Bank investment not ruled out - Lenihan

  The Minister for Finance, Brian Lenihan has said the Government has not ruled out public investment in Irish banks, but said banks had to demonstrate a capacity to attract private investment. Speaking on RTE’s this week, Mr Lenihan said the State putting money into the banking system would be a last resort and it was entirely [...]

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• Inflation rate falls back to 4%

Official figures show that the annual rate of inflation fell back to 4% last month from 4.3% in September. The Central Statistics Office said lower petrol and diesel prices and falls in the prices of clothes and footwear were the main factors in the fall. The CSO said the October figures did not include rises in excise [...]

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• Bank Of Ireland profits down by 32%

Bank of Ireland has reported pre-tax profits of €650m for the six months to the end of September this year, a drop of almost a third from a year earlier. In its statement published this morning, the bank also said it would not pay a dividend to shareholders. Chief executive Brian Goggin told RTÉ radio that the [...]

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• Permanent TSB offers 10k for career break

 Permanent TSB, one of the largest players in retail banking in Ireland, is offering staff a paid career break in an effort to cut costs. The initiative is being taken as the bank expects less business volumes in the months and years ahead arising from the recession in the Irish economy. Permanent TSB has confirmed it is [...]

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• AIB Ireland reduces 2008 earning forecast

  AIB shares have opened sharply lower after issuing an interim management statement this morning, in which it substantially reduced its earnings forecast for this year. The bank said it does not expect a ‘meaningful’ recovery in the residential market until 2011. AIB Group, Ireland’s biggest bank, said bad debts, largely because of loans to residential property developers [...]

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• Irish Banks asked to submit risk reduction plans

The Financial Regulator has asked the six Irish banks covered by the State’s guarantee to submit new business plans showing how they plan to reduce their risks. The regulator has also placed ‘officers’ in each of the banks to scrutinise their future operations. 20 officers have been employed to be placed on-site across the banks. The moves were [...]

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• Ireland Bank guarantee scheme revealed

 The Government has finally released details its controversial bank guarantee scheme, more than two weeks after the plan was first announced. Minister for the Finance Brian Lenihan said the new regulations would take the Government deep into the banking system. Under the scheme, taxpayers will guarantee all loans and deposits in the country’s banks and building societies. One [...]

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