Could Credit Unions Buy Ulster Bank ?

trajan

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I realise it's too much for any one single credit union, but could the credit unions in their entirety (or something like the League of Credit Unions of Ireland) club resources and create some entity to purchase the Ulster Bank off NatWest ?

Why buy it ?
For its universal banking licence including its clearing operation (increasingly doubtful value, I know), access to interbank, financial market and business services and above all its mortgage business.
Credit unions are the de facto banks in all villages and towns in the country since 2008.
They are crying out to be let participate in mortgages for years now.
And they are bursting with cash.
 
I hope not. I think that is what the regulator wants large credit unions to fill the gap between the main banks.

Credit unions were set up by the members who could not borrow from the main banks. The small regular saving and borrowing by its members kept the credit unions functioning well. Share holders got good dividends for their money.

It was when credit unions started giving large loans for business adventures and large loans for mortgages that many went down hill. Too many junkets. There are many volunteer directors that do not realise their are legally responsible for the investments and decisions made.

Banks have years of experience in regards to mortgages while only a few credit unions have dipped their toe in.
 
Even if you combined all of the credit unions they'd still be smaller than Ulster.


Not sure having 200 credit unions relying on the fortunes of one bank during a global crises is really an improvement over what's expected.
 
credit unions are now starting to issue debit cards (Ballinasloe is the first), they already offer large loans for home improvements, some offer mortgages (uncompetitive). For average Mary or Pat, the addition of a debit card makes it probably as much a banking service as she requires.

That's where the CU is good.
 
credit unions are now starting to issue debit cards (Ballinasloe is the first), they already offer large loans for home improvements, some offer mortgages (uncompetitive). For average Mary or Pat, the addition of a debit card makes it probably as much a banking service as she requires.

That's where the CU is good.

Have they not started a while ago? I think Cara CU in Kerry has had debit cards with their current accounts for over a year at this stage.

I think they will be my logical switch from UB when it comes to it.
 
Odd because Ballinasloe were included in the original pilot bunch of I think 11 CUs launching debit cards, maybe they didn't go ahead there for whatever reason but that link makes it sound like debit cards have just arrived to CUs! Definitely here before now, late 2019 seems to have been the launch date.

 
Well, not all the Ulster Bank's assets would be of interest.
But some would. One of the reason's I kept an account at Ulster was that I could use the debit card in ATMs abroad. Of course this was all contingent on the NatWest/RBS behemoth behind Ulster, a thing it won't have in future.
My vision is one of each CU having a membership of some financial vehicle that would have a limited banking licence - necessarily limited since otherwise the greedy middle managers would just start using deposits to speculate on money-markets and derivatives, overborrow from international banks to fuel mortgages, deny loans to small builders to raise house prices, etc, etc.
I suppose the existing mortgage book would be split among the other banks, likewise with other products like pensions, LI, investment funds, etc.
The BOI and AIB are long becoming business banks with no interest in lending to John & Mary Somebody or even John Somebody & Sons Ltd. But these types of customers also need to go abroad, hire cars, pay for petrol, pay hotels, buy samples of goods, etc. And it would be better to have a CU with a means to enable such transactions to be done without a separate bank account.
 
One of the reason's I kept an account at Ulster was that I could use the debit card in ATMs abroad. Of course this was all contingent on the NatWest/RBS behemoth behind Ulster, a thing it won't have in future.
But, you can already do this with some credit unions...
 
Their cards are MasterCard, not sure what the ATM says but I actually think some CUs have removed their ATM machines, certainly local one has as the old machine only worked with their old style ATM cards whereas now that they have MasterCard debit cards which can be used in practically every machine and shop so no need for their old individual machines.
 
Their cards are MasterCard, not sure what the ATM says but I actually think some CUs have removed their ATM machines, certainly local one has as the old machine only worked with their old style ATM cards whereas now that they have MasterCard debit cards which can be used in practically every machine and shop so no need for their old individual machines.

But have YOU actually drawn cash from European or US ATMs using your CU debit card ?
 
Does the CU ATM have some internationally recognised card company like Visa or MasterCard ?
There seems to be a basic misunderstanding of the functionality that is available to Credit Unions, if they choose to avail of it.

Firstly in relation to Cards:
Some Credit Unions have 'legacy' ATM only cards. These can only be used in ATM's in Ireland, and in some cases only at ATM's provided by that specific Credit Union. The ones that are available to use at all ATMs are provided through 'shadow' accounts held by one of the main banks.
Newer card functionality is a full functioning MasterCard, and can be used anywhere worldwide, for point of sale transactions, online shopping, or ATM use. And yes, they work.

All Credit Unions can process full SEPA payments functionality. If there are any that don't, it's their own choice not to. The functionality exists, and is available to them.

There is no benefit to Credit Unions getting additional access to Clearing. They don't need it.

The issues holding Credit Unions back from additional Mortgage lending are Legal & Regulatory. There is already an appetitie within the CU member base for as many mortgages as they are allowed to issue.
 
I just asked this in another thread, seems just as relevant here though, I wonder whatever happened with the discussions with Sparkasse? I recall hearing an interview on the radio from one of their spokespeople at the time, it seemed like there was genuine interest in coming into the Irish market.

EDIT: another article from the start of 2018, clearly showing their interest, I can't see anything more recent though
 
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I just asked this in another thread, seems just as relevant here though, I wonder whatever happened with the discussions with Sparkasse? I recall hearing an interview on the radio from one of their spokespeople at the time, it seemed like there was genuine interest in coming into the Irish market.

EDIT: another article from the start of 2018, clearly showing their interest, I can't see anything more recent though

Very interesting, Mojoask.

But I suppose we know where the resistance is coming from though, don't we ?
The two thick pillar banks aided and abetted by their bum blanketers in the Dept of Finance and the Central Bank.

How I'd love to see landesbanks across Ireland.
 
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