# Bloomberg: Rabo Ireland Deposits up 40%, Irish Bank Flight



## Lightning (14 Sep 2011)

Some interesting facts and figures about the ongoing huge deposit flight ... 

http://www.bloomberg.com/news/2011-...s-means-collateral-risk-piling-up-at-ecb.html



> “I wouldn’t trust the banks,” said Carey, who keeps her savings at credit unions. “I’d be afraid of them. Look at the money they gave to the builders and the terrible situation we’re in now.”
> 
> It isn’t easy for retail depositors such as Carey to move funds abroad. In Ireland, there has been some shift to units of foreign banks operating in the country. RaboDirect, the Irish online-banking unit of Utrecht, Netherlands-based Rabobank Group, saw deposits* rise about 40 percent* in 18 months, according to General Manager Roel van Veggel.





> Ireland took control of five lenders and is winding down two of them. Even Bank of Ireland, which wasn’t nationalized because its losses weren’t as catastrophic, saw deposits dwindle by 20 billion euros, or 23 percent, last year.
> 
> *At Allied Irish Banks Plc (ALBK), Ireland’s second-largest lender, deposits declined 37 percent over the past 18 months*. The bank said July 25 that most of the drop occurred at the end of 2010 and in the first quarter of this year as companies pulled money amid sovereign and bank downgrades. Deposits since the end of the first half have been “broadly stable,” said Alan Kelly, the lender’s director of corporate affairs and marketing, who declined further comment.





> Deposits by financial institutions in Greek banks, which make up 21 percent of the total, have fallen by one-third since the beginning of 2010, while those by non-financial firms and residents dropped 9 percent, according to Bank of Greece data.


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## Firefly (14 Sep 2011)

What I'd like to know is that, if and (hopefully) when this whole escapade gets resolved and Irish people start moving their deposits back into Irish banks, will the capital that was provided by the state to fill this gap be returned by the banks to the state?


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## Jim2007 (14 Sep 2011)

People need to keep a bit of perspective here...  

Up to the end of June Swiss banks saw an outflow of €60b in foreign deposits alone and since 2007 foreign deposits have fallen by over €400b.  So if this can happen in a country that is considered to be a haven in bad times, it can only indicate that there are reasons many reasons that banks experience outflows and it should not just be assumed that it is all a because of lack of confidence in the banking sector....

Jim.


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