Never voted for them in my life!
Back on topic:
So if I understand the significance of this slow bank run properly, it means the IMF/EU bailout we've been given will only last for a few months?
spoken like a true closet FF voter
The year end financial results for the banks will paint a clearer picture as to what is really going on with deposits.
So if I understand the significance of this slow bank run properly, it means the IMF/EU bailout we've been given will only last for a few months?
Early March 2011 or thereabouts.
IRELAND'S domestic banks have haemorrhaged more than €70bn in deposits in the past year, as savers and company treasurers pulled their cash out of our financial institutions.
The massive flight in deposits is revealed in an analysis of monthly data from the Central Bank and charts a period of unprecedented turmoil in Ireland's financial landscape.
The figures show our banks lost €69.5bn of deposits between the start of 2010 and the end of November. Further outflows are likely to have occurred in December, putting 2010's total deposits exodus at well over €70bn.
The data covers about 20 "domestic credit institutions", incorporating the traditional Irish banks plus foreign players with Irish retail operations like KBC, Rabobank and Northern Rock.
As such, it masks the likely flight in deposits from 'traditional' Irish banks to foreign-owned institutions like Rabobank and National Irish Banks, which are perceived as 'safer'.
How do I find out the amount withdrawn from An Post saving products over the same period?
What we know -
(a) The ECB has provided €138.2bn of Emergency Liquidity Assistance to the Irish banking system to the end of November, 2010 of which €97.3bn was to the domestic Irish banking system (list of banks at bottom). The ELA is confirmed in the note at the bottom of page 4 of the latest CBI monthly report. Lending from the ECB is up from €80bn in April 2010 and at €138.2bn at the end of November, considerably higher than the previous era all-time high of €118.3bn in March 2009 when the Irish banking system was teetering following the nationalization of Anglo and the exposed €7bn liquidity holes in AIB and Bank of Ireland.
(b) The Central Bank of Ireland has additionally provided liquidity assistance of €44.674bn to domestic Irish banks to the end of November, 2010 up from €13.474bn at the start of 2010 and increasing by €30bn-odd in the three months ending November 2010.
(c) Some €70bn of deposits fled Irish domestic banks (the six State-guaranteed and some 14 others that provide domestic banking facilities) in the 11 months to the end of November, 2010.
(d) The six State-guaranteed banks had €198bn of customer deposits as at their last reporting dates (June 2010 save for INBS which was in December 2009). ECB funding has increased from €87.3bn to €138.2bn since June 2010. If all of this was to replace deposits in the six State guaranteed banks, that would still leave a potential requirement of €150bn from the ECB/CBI should deposits flee in their entirety.
can't see much confidence returning to stop this brisk it's-a-walk-but-really-fast on the banks for a while
these are different (Central Bank) promissory notes...new, improved, off balance sheet ones
Fortune magazine "torrents of money pouring out of Ireland."
It is far more difficult to set up a foreign bank account, without being resident, and move your money there.
First to leave is professional capital. This is the money in the stock market which goes. Then money leaves the bond market. The bond market shuts down. Then the big corporate deposits leave as financial directors of large companies decide that they are not being paid for the risk of holding assets in the crippled banking system. Ultimately, this fear permeates down the food chain and ultimately the ordinary depositors up sticks and head for the hills.
This column has made this point for more than two years now: the ultimate endgame arising from this government's banking policy will be capital flight. The most damning indictment of this government's competence is that at a time when Irish people have never saved -- or wanted to save -- more, we are seeing deposits leave our own banks. Last week, this column discussed the massive switch from spending to saving in Ireland and yet bank results show deposits leaving the system.
And some of that money is coming here to places like Davos. For the Swiss, Ireland is just a microcosm of what is happening all over Europe. For them the deal is very simple. The ECB has to convince German, French, Dutch and Austrian savers that their money is safe in the euro. To do this, the ECB has to convince the savers that it has a credible way of dealing with the banking and debt crises in Greece, Ireland, Spain, Portugal and the big one to come, Italy.
It has failed to do this in 2010. Will 2011 be any different? When seen from the altitude up here in the Alps, the answer seems to be definitely not.
They also explained that lots of money is coming from Ireland. These guys, who I worked with years ago, have never really seen any business from Ireland and certainly during the boom they looked on with a sense of trepidation because they had seen this before.
Now they are getting calls from Dublin on a daily basis.
A very interesting point has been made on thepropertypin.com about the Central Bank of Ireland stats. They only show money leaving the country, the stats do not include those that are moving money out of one Irish bank (AIB etc) and into another Irish based bank (Rabo etc).
Also, excellent summary on why a new government will have little if any impact on confidence in Irish banks.
I agree with you that the bigger picture for Irish banks is far worse than just the money that has left Ireland.
I was under the impression that money was going into these banks (NIB/Rabo/Ulster/NUK )