I would go one further, and wonder about the need for a retail banking sector at all. Instead, everyone should be allowed borrow direct from ECB at their prevailing rates, same as banks do - which elimates the need for commercial and retail banks.
I don't say that lightly, the careers and livelihoods of thousands of banking workers are under threat as a consequence of emerging technology, 5G, 6G , AI etc and Ulster Banks withdrawal, to me, is just another death knell of the banking sector.
Before this health crisis, I found it rare to go into a bank and when I do it is mostly automated. As an Ulster Bank customer, it is somewhat sad, as I found their customer service over the years to be excellent.
Banking and Banking functions like money lending are around since the Assyrians and will survive all of us.
5G/6G/AI are not a death knell to banks - you make here wild claims. Banking develops obviously with technology and regulations but is not going away.
Technological advancements and changing consumer habits look like they're spelling the end of the traditional branch network.I appreciate that and accept of course I could be wrong. I'm not suggesting banking is going away, but rather banking the way we know is on its knees. It will still exist, in some form, but my guess is it will be near unrecognisable to what we are used to.
Most of what banks have to do is governed by single market rules: from customer due diligence, to early repayment of loans, to deposit guarantee insurance, and so on. What is not governed by EU law is the level of claims (insurance) and the mortgage foreclosure process (lending). You might want to start there and ask why there aren't more foreign players in either market.Largely due to lobbying by some governments and various vested interests banking and insurance have not been fully subjected single market rules.
There is a single EU supervisor, the ECB. Standards for banks are set by the European Banking Authority. There is no industry (to my knowledge) with more direct EU-level supervision than banking. An there is regulation for nearly everything a bank does now, a huge amount of its activity is compliance. Nearly all industries face EU regulation of course. But this is generally by way of minimum harmonisation directive. The EU agrees a directive, member states implement it via national law and regulatory bodies (something like product safety for example).This could be mitigated by replacing national central banks with a single EU regulator, akin to what exists in other parts of the economy.
They are subject to divergent national rules and regulatory regimes much more so than most other industries.
The seeds for Ulster leaving were sowed a decade a go when we as a varies agencies (the government, the CBI through its mortgage code and the legal profession) placed the emphasis on keeping people in their homes over having people face to to their contractual committments.
The EBA did a long report on the cost of loan enforcement across Europe last November.The closer aligned we are to the rest of Europe on where that line is the more likely we are to coax a few of those European banks back in.
A great find. I don't pretend to have read it but skimming throughFor example Table 49 shows Ireland sees a recovery of just 30% of the value of re-possessed real estate. For Germany the average is 89%.
Most of the borrowing that governments get is from these financial instititions banks, insurance companies and pension providers. Governments need banks aswell. yes the ECB provides the backdrop for negative interest rates but the financial institutions are the means by which they do it. Tying up capital in "secure" assets essentially means banks are now forced to lend more to governments, its called "financial repression" and is the means by which governments are paying for the pandemic.I would go one further, and wonder about the need for a retail banking sector at all. Instead, everyone should be allowed borrow direct from ECB at their prevailing rates, same as banks do - which elimates the need for commercial and retail banks.
Not any more. The ECB just holds the government bonds directly nowGovernments need banks aswell. yes the ECB provides the backdrop for negative interest rates but the financial institutions are the means by which they do it.
Ireland is already integrated financially in the EU - we already have a Banking Union - a wider integration (EU wide deposit guarantee) is not in the interest of several other EU countries (Germany, Finland, Netherlands,...) as as they do not want if necessary to bail out savers in countries with subpar governments like Greece or Ireland.Seems to me we have not learned much from the banking crisis. In that we found ourselves held hostage to failed businesses that we could allow to fail because we ourselves would suffer. What I believe is we need to get as much of our money back from this old carcass and then serve up what's best for our needs. That means means we look to see a possible full integration with financial services in the EU or any other method. The approach should Be, what's best for us.
I think we definitely need a third big bank for some basic competition. Fees are already on the way up in BOI and UB haven't even left the markey yet.
It's a sign of things to come.
Using your German retail analogy I doubt you'd get a Lidl or an Aldi opening in Ireland if 10% of shoppers wheeled their trollies past the til and told them they'd pay laterAll while the local security guard just shrugged.
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