[Article] Authority probe lets banks off the hook

gandalf

Well as usual the chance to change things for the better of the consumers/citizens of the country has been sacrificed for big business.

Its no wonder that Dansk Bank jumped at the opportunity to get into the "most profitable" Banking sector in Europe. FF & the PD's show their new caring image, caring for all their mates in business (as usual!)

Authority probe lets banks off the hook
Thursday December 16th 2004

THE country's main banks were seen yesterday to have escaped lightly from the probe by the Competition Authority, with Bank of Ireland's share price nearing a year high, and other bank shares largely unaffected by the probe.

Stockbroking analysts went so far as to say the banks will welcome the Competition Authority report.

Davy Stockbrokers banking analyst Scott Rankin described the report as a bomb that had been ticking for two years but "failed to go off". As a result, the study by the competition body would be greeted with relief by AIB, Bank of Ireland, Permanent TSB and their investors.

NCB's David Odlum concluded: "Overall, we continue to believe that the eventual result of the Competition Authority review will not have a major impact on the Irish bank sector."

Banks had worried that a recommendation could have been issued that they pay interest on current accounts. This was the most controversial aspect of a British Competition Commission report in 2002 into the small and medium-sized company banking market.

Merrion Stockbrokers' banking analyst, Seamus Murphy, said the recommendations of the Competition Authority report were not as hard-hitting as its British counterpart.

"Indeed, we suspect that the banks themselves will welcome the publication of the report, which now removes the residual uncertainity (and risk premium) in their and investors' minds about its potential impact," Mr Murphy said in a briefing note.

Meanwhile, Minister for Finance Brian Cowen said yesterday it was important the ownership of Irish banks remains in Irish hands, which could be interpreted as implying that they need to maintain their profitability to avoid becoming takeover targets.

"I am happy to promote our industry as a provider of services internationally. But I will never be an apologist for bad service to consumers or for practices that put at risk the reputation, not just of individual institutions, but of the Irish financial services industry at large," he warned.

Shares in Bank of Ireland were up 1.09pc to €12.11, Anglo Irish was up 2.3pc to €17.80, Irish Life and Permanent was off 0.66pc to €13.51 and AIB was down 0.13pc, or 2c, to €14.88.

Charlie Weston

http://www.unison.ie/business/irish/stories.php3?ca=80&si=1305315 (requires registration)

Gurgle

gandalf wrote:

Well as usual the chance to change things for the better of the consumers/citizens of the country has been sacrificed for big business.

Its no wonder that Dansk Bank jumped at the opportunity to get into the "most profitable" Banking sector in Europe. FF & the PD's show their new caring image, caring for all their mates in business (as usual!)

2 words: Corporate democracy