Tribune: BoSI "winding down"

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According to today's Sunday Tribune, citing sources, BoSI have made a decision last week to wind down the 2 remaining area's of their Irish operation.

The article says that there are "fears" that this means LBG are "pulling the plug" on what is left of their Irish operation.

This could mean that business customers may soon have to look for new current accounts and personal & business customers may have to find new savings accounts.

Potentially another blow for competition in the Irish banking sector.
 
This is big news ...

Bank of Scotland Ireland to close by December

http://www.rte.ie/news/2010/0819/bankofscotlandireland.html

Bank of Scotland Ireland is set to wind down its remaining operations saying there was little opportunity for scalable growth in the future.
Its plans to transfer its business currently carried on by BoSI to Bank of Scotland plc.
Concerns over the bank's plans were raised after a staff meeting was called at its Dublin headquarters this morning.
Today the bank announced that Bank of Scotland plc would enter into an agreement with an independent service company that would perform various administrative functions relating to the BoSI banking business.
Under this proposal, the 'majority' of BoSI employees, which numbers over 800, would transfer via Transfer of Undertakings (Protection of Employment) Regulations to the service company.
Click to expand...
 
Does anyone know what happens to BoSI customers that have depsoits, such as term deposits with them? The BoSI websites does not yet state that they have stopped taking deposits.
 
CiaranT said:
Does anyone know what happens to BoSI customers that have depsoits, such as term deposits with them? The BoSI websites does not yet state that they have stopped taking deposits.
Click to expand...

I guess the answer is....

"Its plans to transfer its business currently carried on by BoSI to Bank of Scotland plc"
 
It seems that the new 'Bank of Scotland plc' will be wound down over several years.

So it does not clearly answer questions such as ..

1) How long do business current account holder have to find a new bank?
2) Have BoSI stopped taking deposits from personal and business customers?
 
[broken link removed]
The decision came after the 41%-U.K. government owned bank "concluded there was little opportunity for scalable growth in the future."
Lloyds said Bank of Scotland will then enter into an agreement with an independent service company to perform administrative functions related to the Irish business.
Current Bank of Scotland (Ireland) employees would be transferred to that company, avoiding significant job losses, the bank added.
Click to expand...
 
A clear international flag demonstrating a lack of a viable market for the foreseeable future. I'd say it will be a once bitten twice shy retreat. Assume the wording 'future' is a period of time that extends beyond the term of the loan book?
 
I've seen it posted on another website that BOSI will try to get people to refinance their mortgages with other banks by 2012 with them potentially agreeing to writing off some of the outstanding loans in order to encourage people to do this. Is this really a realistic possibility?
 
There's a discussion on politics.ie about it. There was no link posted so not sure where this is coming from. With so many people in negative equity it would be hard to refinance with other banks. Plus it would involve probably losing tracker mortgaes if people had them. It's an interesting one though.
 
Its not going to happen. The loan book will just be transfered to Bank Of Scotland. There won't be any impact on mortgage customers.

The biggest losers are small businesses who are losing a source of credit.
 
Well if the haircut is right ie one all over, I'd agree to refinance!

We'll see what happens I suppose although you're probably right Sunny. The biggest losers are those about to lose their jobs I would have said. Most small businesses lost their credit lines and any support from their banks a long time ago unfortunately.
 
Bank of Scotland closing down

Apologies if this is the wrong forum. An aspect of this development which has not yet got much publicity is the fact that when a client seeks working capital facilities at another bank the only security that can be offered is a second charge on the property. This can take time and agreement to put in place and Bank of Scotlands first priority would normally include interest and other charges.
 
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