Permanent TSB to raise interest rates

[Sunny]

Im talking to the wall here. The banks are not busy, not lending and still employee the same people. Im not suggesting they should wash glasses like a bartender in a slow pub...im saying to improve margins other than raising interest rates.

When have banks raised interest rates in the past - while the ECB rate is going down?

From Today - DOnt rule out another interst rate cut - ECB
http://www.rte.ie/business/2009/0730/imf.html

You are talking to the wall because no-one agrees with you. I have already pointed out that PTSB have reduced or are reducing their headcount by 500 people and is cutting another €22 million off payroll costs on top of this. Just because there have been no big job loss announcements doesn't mean the banks are still employing the same number of people as before. Trust me they are not.

 

[Shawady]

You are talking to the wall because no-one agrees with you. I have already pointed out that PTSB have reduced or are reducing their headcount by 500 people and is cutting another €22 million off payroll costs on top of this. Just because there have been no big job loss announcements doesn't mean the banks are still employing the same number of people as before. Trust me they are not.

Sunny,
As someone that works in the banking sector, has the issue of banks merging gone off the agenda?
I was under the impression that we would end up with 3 or 4 banks as a result of the banking crisis.

 

[Sunny]

Sunny,
As someone that works in the banking sector, has the issue of banks merging gone off the agenda?
I was under the impression that we would end up with 3 or 4 banks as a result of the banking crisis.

I think you still will but nothing could really happen until NAMA was sorted and the banks had cleaned up their balance sheets. Hard to see much of a future for Anglo, Irish Nationwide and even Permanent TSB. Thats not even taking into account the foreign banks who might pack up and leave.

 

[kaplan]

aib has hinted at a rise in mortgage rates. It's inevitable banks will reprice their loans where they can to rebuild balance sheets. adding .5% will bring margins back to where they were pre BOSI shakeup a few years ago - BOSI's knackered and is writing off €1bn at least this year - mortgage arrears are climbling (doubled in AIB) as are other consumer debt arrears (more than doubled) - get used to higher cost of credit where available as it will be rationed - in the absence of competition the big two will make hay if left unchecked - nothing will be done about consolidation until banks are stablised which won't happen this side of mid 2010 - one option expect to see PTSB taken out by one of the big two with the other taking on EBS & INBS- oligopoly here we come - notion of a super mutual is pie on the sky as it wouldn't be able to punch at the weight required to off-set the big two's dominance -