ICS - What is happening to the Depositors?

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Lightning

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Dilosk today acquired a chunk of ICS mortgages.

The EC restructuring plan for BoI mandated BoI to:

As part of this, the Group agreed to the sale of the ICS Building Society’s (‘ICS’) distribution platform and, if required by the purchaser, a book of mortgages at a minimum of par and a similar quantum of matching deposits.
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Today ...

No deposits are transferring as part of the sale.
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But Dilosk are acquiring the ICS brand.

So how did BoI get away with not selling the deposits in conjunction with the mortgages? Wasn't the EC idea to create another full service competitor in the market on the deposit and mortgage front?

With ICS about to become a mortgage only brand, or so it appears, will ICS deposits get transferred into BoI or sold to a third party?
 
Hi Ciarán

I would guess that it was not practical to move the deposits.

First of all, Dilosk will not be a bank, so it will not be allowed to take deposits. Even if they got approved to take deposits, how many people would leave their savings there?

If a foreign bank bought the ICS, then they could have taken the deposits as well.

I understand that a good part of the funding for Dilosk will come from Bank of Ireland. So they probably amended their deal with the EC, to keep the deposits but to lend them on to Dilosk for a certain period.

Brendan
 
That sounds like what BoI are doing.

The removal of the ICS brand from the deposit market will be the 11th brand name to disappear from the retail deposit market since the 2008 crisis. Bank of Scotland Ireland, Halifax, Anglo Irish Bank, IBRC, Irish Nationwide Building Society, Northern Rock, PostBank, First Active, ACCBank and Danske were the other deposit-holding brands.
 
Hi Ciarán

They are getting rid of the brand from the deposit market, but I assume that they will continue to use it for mortgages.

Brendan
 
Yeah, it seems that Dilosk will use ICS as a brand for new mortgages. It does not seem to me to be a long term sustainable model for Dilosk to be reliant on funding from BoI to offer mortgages.

Meanwhile, effective 7 July, BoI will no longer offer ICS deposit products to new customers.

Goodbye ICS deposit products which were offered, under different brands, since 1864.
 
Interesting article on the ICS closure in The Sunday Independent. It brings a bit more clarity to the situation.

ICS building society ceases to exist on 1 September 2014. However, the brand will be used by Dilosk after this date.
 
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