RaboDirect implied message that people’s money is “safer” with it than others in the Irish market is intriguing. As it loses its competitive edge on its funding strategy it is it seems deliberately suggesting that people’s deposits would be safer with it than in an Irish Government Guaranteed deposit with one of now 5 covered institutions and Anglo Irish Bank or with UK state owned Northern Rock.
One wonders if it would care to comment on the now how ordinary unsophisticated depositors might use credit ratings in assessing the overall risk profile of any bank?
Indeed RaboDirect makes much hay out of people being concerned and trumpets its AAA status – both the FSA Turner report and De Larosiere report are quite clear in saying that rating agencies should be careful to ensure people know what ratings represent and what they do not represent. Surely using a rating, which is a sophisticated tool used by sophisticated investors as part of an overall risk assessment process, as a blunt marketing instrument, directly contradicts its marketing gimmick of “truth in banking”.
Kaplan
ps admission of potential conflict as I have a deposit with RaboDirect
One wonders if it would care to comment on the now how ordinary unsophisticated depositors might use credit ratings in assessing the overall risk profile of any bank?
Indeed RaboDirect makes much hay out of people being concerned and trumpets its AAA status – both the FSA Turner report and De Larosiere report are quite clear in saying that rating agencies should be careful to ensure people know what ratings represent and what they do not represent. Surely using a rating, which is a sophisticated tool used by sophisticated investors as part of an overall risk assessment process, as a blunt marketing instrument, directly contradicts its marketing gimmick of “truth in banking”.
Kaplan
ps admission of potential conflict as I have a deposit with RaboDirect