Silent Run on the Bank of Ireland by Corporate Depositors

isle of man

There has been a silent run by corporate depositors at the Bank of Ireland which is now Ireland's biggest lender and is 36% owned by the government. The bank announced that in August and September there were withdrawals by corporate depositors. Citing banking sources, the Irish Times suggests that the withdrawal could have been as much as EU10 billion. The bank said while the situation had "stabilized" there nonetheless continued to be "outflows of ratings-sensitive customer deposits in our capital markets business." On top of that, mortgage arrears at the bank continue to increase." The bank admitted it continues to be totally dependent on the European Central Bank's emergency unlimited liquidity window for funding where it receives short-term credits of no longer than three months' duration.



There is a direct British connection. The Bank of Ireland is in a joint venture with the British Post Office Bank which operates 11,500 branches and is used primarily by normal depositors. Also not widely reported this week is the fact that this subsidiary was reorganized as Bank of Ireland (UK) plc as of November 1, so as to allow the deposits to fall under Britain's deposit guarantee scheme. This was no doubt a pre-emptive move to avoid a run on the bank as the crisis worsens.



While Inter-Alpha's Allied Irish Bank's small banking operation in the U.K. also falls under the British deposit insurance scheme, the U.K. subsidiary of Anglo Irish Bank, now 100% owned by the government, is not covered by the U.K. guarantee, but only the Irish guarantee which is good as long as the Irish government is solvent.

http://www.larouchepac.com/node/16456

ei.sdraob

from our own centralbank



more money leaving deposits than coming in, so much for "an increased savings rate" :rolleyes:

The bank announced that in August and September there were withdrawals by corporate depositors.

raises hand i've cut down the business current account to cover just one months expenses, no more, the interest with BOI is rubbish anyways, and their business online banking system is buggy. Tho customer support is ok.

Scofflaw

Please don't simply repost articles, particularly not from a source like Larouche. The graph ei.sdraob has shows a situation that nobody in their right minds would describe as a 'run' - which is the problem when we get to Larouche stuff.

moderately,
Scofflaw