SBP: INBS May Return Deposits to Customers

According to the Sunday Business Post, the department of finance and the NTMA are putting final touches to the closure of INBS.

The Society will be made to disappear, subject to agreeing a compatible structure with the European Commission, which has signalled that it wants INBS ..... to put in place a mechanism that will hold deposits or return them to customers.

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Lenihan's main priority in extinguishing INBS will be to ensure the 4 billion EUR deposit book is handled in an orderly fashion. The society currently offers savers rates that are far in excess of those available from viable banks.

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It has always being an interesting and concerning point as to what will happen to the INBS deposits. It now looks like a cheque in the post is a possibility.

When Anglo (savings bank part) is given a new name they should move all the deposits over to it.

IRISH NATIONWIDE RETURNING DEPOSITS TO CUSTOMERS.

I have a deposit account with INBS that does not mature until about 6 months. Should I close it now or wait and see what happens? Getting worried now when I see the other posts about INBS.

theresa1 said:

When Anglo (savings bank part) is given a new name they should move all the deposits over to it.

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It is surely an option. There are multiple options.

The high loan to deposit ratio's at AIB, EBS and PTSB have to be tackled. In particular, the 240% loan to deposit ratio at PTSB is highly unsustainable. Hence, the deposit base at INBS would seem an obvious target for PTSB. However, will PTSB pay a premium, or can they afford to for the deposits? The deposit book might be worth less than 100% of book cost.

Also, the more the INBS deposit base dwindles the more difficult it will be to offload, the more likely it is will simply be returned to the depositor's. This is exactly what happened with Halifax, BoSI & PostBank, and seems likely to happen to INBS.

IRISH NATIONWIDE RETURNING DEPOSITS TO CUSTOMERS.

Many thanks for that, Ciaran T. I think you are right. Looks like I could be getting a cheque in the post soon.