# Sunday Business Post: Depositors Are Flocking to Foreign Banks



## Lightning (20 Nov 2010)

The Sunday Business Post reports:



> Foreign owned retail banks operating in Ireland have seen cash inflows surge in recent weeks, amid consumer fears for the safety of their deposits in Irish-owned banks.



Rabo told the Sunday Business Post:



> Inflows of deposits have at least *doubled in the last 2 weeks.*



Investec told the Sunday Business Post:



> We have seen a *dramatic increase ... over the last month*


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## fobs (20 Nov 2010)

Helped in no small part by the total inability of Brian Cowen to spell out what was going on and to stess deposits were guaranteed by europe up to 100,000.

Brendan Burgess suggesting depositors pay a levy for their deposit guarantee cannot have helped either


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## Bessa (20 Nov 2010)

+ 1


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## pudds (20 Nov 2010)

Was in it  AIB that lost 13bn in business customers deposits since January... so what does that tell ya.


[broken link removed]


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## Brendan Burgess (21 Nov 2010)

fobs said:


> Helped in no small part by the total inability of Brian Cowen to spell out what was going on and to stess deposits were guaranteed by europe up to 100,000.
> 
> Brendan Burgess suggesting depositors pay a levy for their deposit guarantee cannot have helped either



I think you should quote my suggestion correctly. 

I have not suggested, as others have, that current depositors should pay a levy.

I have suggested that those who benefited from a retrospective guarantee should contribute to the cost. 

Brendan


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## Knuttell (21 Nov 2010)

Brendan Burgess said:


> I think you should quote my suggestion correctly.
> 
> I have not suggested, as others have, that current depositors should pay a levy.
> 
> ...



Not to sure I understand this form of words but fair play to ya Brendan,I had been dithering about transferring a  largish amt of money (six figures)to Belgium,the dithering stopped when I read your  thread,hopefully mid next week a large six figure sum will start drip  feeding out of Irish banks and away from idiotic notions like the one  put forward by yourself...you really should know better that to start a  run on our banks...talk about throwing petrol on a fire.


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## PaddyBloggit (21 Nov 2010)

I don't think Brendan should be shouldering the blame for a so called run on the banks.

I had mine withdrawn well before he said anything.

When I heard Cowen et al saying that everthing was alright with deposits that made me decide to take all my money out of my Irish accounts.

If you want to blame anyone ... blame our blithering and blustering political leaders.


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## canicemcavoy (21 Nov 2010)

> I have not suggested, as others have, that current depositors should pay a levy.
> 
> I have suggested that those who benefited from a retrospective guarantee should contribute to the cost.


 
I presume there are three situations:

(1) People who have deposits in the banks now _and_ in 2008: they pay
(2) People who had deposits in the banks in 2008 but no longer (perhaps bought house) - they also pay
(3 )People who didn't have deposits in the banks in 2008 but do now - they do not pay

I presume group (3) is rather small, so I'm assuming that the majority of people fit in 1 and 2.


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## Brendan Burgess (21 Nov 2010)

Canice - I will clarify it in case there is confusion


(1) People who have deposits in the covered banks now _and_ in 2008: they pay
(1a) People who had deposits in the covered banks in 2008 but no longer because they have transferred these to other banks,or overseas - they also pay
(2) People who had deposits in the covered banks in 2008 but no longer (perhaps bought house) - they also pay
(3 )People who didn't have deposits in the banks in 2008 but do now - they do not pay

[/QUOTE]


That is what I am proposing. Those who benefited from the retrospective guarantee contribute to the cost of it. 

Please continue discussion of my proposal on the thread in which it was raised. 

Brendan


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## thewatcher (21 Nov 2010)

I take it your only referring to the guaranteed banks in the original scheme ?


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## Billo (21 Nov 2010)

fobs said:


> helped in no small part by the total inability of brian cowen to spell out what was going on and to stess deposits were guaranteed by europe up to 100,000.
> 
> Brendan burgess suggesting depositors pay a levy for their deposit guarantee cannot have helped either



+1


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## Lightning (21 Nov 2010)

fobs said:


> the total inability of Brian Cowen to spell out what was going on and to stess deposits were guaranteed by europe up to 100,000.



I don't see your point. 

There is no guarantee by Europe on the first 100,000 EUR. The guarantee on Irish deposits in provided by the Irish state. 

It is not Brian Cowen's position to make false comments about deposit protection. If the Europe wide protection was to change, then the announcement should be made by the ECB, not by the Irish government.


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## Expat64 (26 Nov 2010)

RaboDirect is doing very well!

"Rabobank benefits from deposit flight*
The public are flocking to move their money out of Irish banks and into foreign-owned banks including Rabodirect"
* 
http://www.guardian.co.uk/business/ireland-business-blog-with-lisa-ocarroll/2010/nov/26/ireland

Rabobank today confirmed they have seen "a significant increase in  calls since the beginning of the month" as the Irish public flee to  foreign-owned banks.  "Much of this is due to our AAA rating, as part of  the Rabobank Group," said spokeswoman Geraldine McCarthy. It's  extracting as much capital as it can out of its rivals' discomfiture  with its slogan "honest financial products from one of the world's  safest banks." Another swipe at the banking industry is: "life's more  interesting when you tell the truth".

Danske Banke, the owner of  National Irish Bank, has also said it has seen deposits increasing as  client move funds from Bank of Ireland and AIB. 
 "In the current  circumstances, we have been seeing an increase in our deposits," said  Simon Fullam, a spokesman for Danske's Irish unit.


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## Brendan Burgess (26 Nov 2010)

Folks

Please stay on topic.  I have had to deleted off topic posts.

Brendan


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## Lightning (28 Nov 2010)

Tribune: flows out of Irish Banks continue

The tribune say Nationwide UK have reported a five fold increase in business.

The tribune also say that a major UK wealth investor has told all his clients to get deposits out of Irish banks. 

The tribune also says that deposit outflows have increased significantly in recent days "since the IMF arrived."


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