KBC: Deposits have soared by 50%

Further evidence of where the deposits to Irish banks are moving to:

http://www.independent.ie/business/...in-q4-but-deposits-remain-strong-2487614.html

KBC grew deposits by 50pc last year and is planning a major marketing campaign in 2011 to build on that growth and regain share in the mortgage market, he added.

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The advertising blitz will also extend to KBC's deposit offering, which has already seen customer funds grow from €4bn at the start of the year to €6bn at year-end.

The deposit boost is in sharp contrast to recent outflows of funds at Irish-owned banks including AIB, Anglo Irish Bank and Bank of Ireland.

"It's still a competitive market out there, but we're part of a very substantial entity," said Mr Reynolds. "If we're doing our job properly, we should be able to attract deposits".

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And the other side of the coin.

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The best data I have access to ranks KBC at number 5 in terms on exposure to the PIGs at about €20b! Not a place I would be thinking about putting money, if I wanted to avoid the kind of risk that Irish people see in Irish banks.....

I'm concerned for people who fail to exercise diversification in reducing financial risk and seem to think that the safest place is a single foreign bank! The reality is that most European banks are not in a great state and there really is no way for the general public to know which one will go pop next - so diversification is the best strategy.

Jim.