... Banking

• 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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• Regulator details regarding Irish banks loans

 The Financial Regulator has revealed that the six main Irish banks have loans totalling €15bn secured only against property. Giving evidence to the Joint Oireachtas Committee on Economic Regulatory Affairs, CEO of the Financial Regulator Patrick Neary said that banks will undoubtedly suffer some losses on these property exposures. He also outlined some measures contained in the [...]

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• EU Commission approves Irish Government’s bank guarantee

 The EU Commission has approved the Government’s €400bn guarantee that covers six Irish-owned banks and five foreign-owned financial institutions. The announcement came as Taoiseach Brian Cowen returned from Paris where EU leaders had agreed on a big funding programme for banks and businesses. Under the programme governments can use taxpayers’ funds to put new capital into the [...]

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• European leaders to meet in Paris

The Taoiseach will travel to Paris later today for an emergency meeting of leaders from the 15 countries that use the Euro. The meeting is being held at the request of Spain. According to French reports, the leaders may be asked to back a plan to invest taxpayers’ money in banks in order to recapitalise them, and [...]

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• ECB US Fed & Bank of England cut rates

The European Central Bank, US Federal Reserve and Bank of England have all cut their key interest rates by half a percentage point. The ECB interest rate now stands at 3.75%, the Bank of England rate is 4.5% while the US Federal Reserve’s key rate is down to 1.5% The US Federal reserve said it cut the [...]

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• Ireland Seanad passes bank guarantee Bill

The Seanad has passed emergency legislation giving effect to the €400bn Government guarantee to a range of financial institutions by 39 votes to 5. The debate in the upper house began at 2.30am this morning, shortly after the Dáil overwhelmingly endorsed the plan. There were some amendments to the Bill in the Seanad, so it now has [...]

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• UK banks complain about Irish banks guarantee

British banks have complained that the Irish legislation enabling a guarantee for Irish banks’ deposits would distort competition. The British Bankers’ Association will deliver a letter to the Government later today. It says the move has put banks in other jurisdictions, especially in Northern Ireland, at a competitive disadvantage. Meanwhile, it has been reported that Britain’s Chancellor of [...]

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• Initial stage of Goverment bank guarantee completed

The Dáil has completed the initial stage of the emergency legislation giving effect to the €400bn guarantee the Government is offering to a range of financial institutions. Minister for Finance Brian Lenihan said it was not a bail-out; the Opposition questioned aspects of the measure in a debate that will continue today. Brian Lenihan opened the emergency [...]

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• No-frills bank accounts urged

No-frills bank accounts should be introduced to bring financially excluded people into the banking system, according to the State’s poverty watchdog. The Combat Poverty Agency has urged the Government to abolish stamp duty on ATM and point-of-sale cards on these accounts. It also says banks should train staff to be proactive in assisting people to open accounts. According [...]

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• Brian Lenihan minister moves to allay banking fears

Minister for Finance Brian Lenihan has said that deposits in Irish banks are secure and that bank customers can rest confident in the knowledge that their money is safe.Mr Lenihan said that he is prepared to review the statutory guarantee limit for bank deposits, which is currently set at €20,000. However, he said the question of [...]

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• Lloyds in 12.2bn Halifax takeover

Lloyds TSB has announced a £12.2bn takeover of rival Halifax Bank of Scotland.HBOS is the UK’s biggest mortgage lender and savings bank. It already has £258bn of retail deposits, and around 15m savers. Lloyds TSB, which does the bulk of its mortgage lending under its Cheltenham & Gloucester brand, is the UK’s third biggest lender in [...]

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