Banks making a fortune from our deposits

kenif

Boards won't allow me to post the URL. But anyone see today's Journal.ie article.

How factual is it? Is it really that easy for banks to make so much profit by simply putting our deposits with the ECB while paying out so little/nothing to their customers.

Henry Ford III

https://www.thejournal.ie/readme/banks-interest-rates-savings-6185527-Oct2023/

It's factual.

It's up to the consumer to find a better rate on their deposits, or invest in real assets. The Irish banks will gleefully take as much almost free money as they can, and make a twist on it.

harry_ireland

This is a very good article.

There is a disconnect between banks having record-profits while depositors aren't compensated for their deposits.

Comparing the 0,06% interest (example of the article) paid to depositors with banks being compensated by the ECB with 4,00%, that's infuriating.

While I understand that banks need to make money, this is just a prime example of financial repression. This adds to the already inexcusable levels of inequality. Because when you get 0,01% before inflation, the real rate of return is deeply negative. At some point, something will break. This is not how a healthy, equal society functions.

coylemj

This adds to the already inexcusable levels of inequality.

The banks are screwing everyone with low interest rates. Where is the 'inequality' in that?

Wanderer78

https://www.boards.ie/discussion/comment/121197229#Comment_121197229

banks create the majority of our money supply, but need our deposits to help do so, i.e. deposits play a vital role in the process, as they help banks meet their reserve requirements in order to create this money....

Ohmeha

Our government had the option in the budget of introducing an effective windfall tax on the bank's bumper net interest margins but they went with a relatively benign increase in the bank levy

Jim2007

This is not the platform for discussion public policy or politics. That is best taken to the current affairs forum.