Irish Deposit Guarantee Raised to 100K/Government backing Irish banks

Keith186

No don't think so. It's protected by Dutch gov. I think I heard on Matt Cooper and it was about €50k. Should be fine anyway wouldn't worry about it.

unclebill98

jimbo78 wrote: »

Can anyone tell me does the €100,000 government guarantee on personal deposits cover Rabodirect accounts?


I'm just worried as they don't appear to have a base in Ireland

Nope, they are regulated by the Dutch Central bank.

Mr Ed

They're regulated by the Dutch government up to €40k

redroar1942

I would'nt be worried about Rabo, I was heartened by how quickly the Dutch & Co stepped in to prop up Fortis.

Do-more

Irish bank deposits guaranteed by Govt.

The Government has decided to guarantee all deposits in Irish banks.

The banks that are covered are: Allied Irish Bank, Bank of Ireland, Anglo Irish Bank, Irish Life and Permanent, Irish Nationwide Building Society and the Educational Building Society and specific subsidiaries that may be approved by Government following consultation with the Central Bank and the Financial Regulator.

Recently the Government guaranteed deposits of up to €100,000. now it has gone further to cover all major deposits by financial institutions with Irish banks.

ts guarantee also covers all money borrowed by Irish banks from other financial institutions.

The statement from the Department of Finance says all deposits, bonds and debt will be covered by the State.

Essentially this is a guarantee that if any Irish bank faces serious problems the Government will step in.

The two-year guarantee is being provided on commercial terms to the institutions.

The backing would be subject to conditions that would protect taxpayers' interests.

The Department says the step is being taken to remove any uncertainty surrounding banks.

It adds it is a very important initiative by the Government designed to safeguard the Irish financial system.

In the coming hours it will be clear if the move is enough to stop the enormous slide in Irish bank shares.

Ogham

There might be a few people moving money out of Halifax, Ulster, First Active NIB , Rabobank and Credit Unions in the next few days.

BuffyBot

Folks - as per the charter, this forum is about financial products/services etc.

I've merged a thread into this existing one, and deleted posts.

If you want to discuss the greater financial crisis then Economics or Investments & Markets would be more appropriate.

Let's keep to this forums reason for being, and move the more advanced discussions about free markets and global economics to the more relevant forums.

zod

Is ulster bank covered by the 100k ( or unlimited ) protection by the Irish Government ?

Ogham

Just the 100k

See full list of Guarantees here

tHE vAGGABOND

Congrats to everyone who has more than 100k in their deposit account

Jimbo

That's good.
Apparently they have AAA rating anyway so I'm sure they're pretty secure anyway.

mountainyman

derry wrote: »

The last person i would believe that a bank is secure is a bank employee of any sort especialy the underling who count the mioney they know nothing for the stuff upstairs

Thats like listining to the camp comandant in Auswhich "Arbiet maken Frie "the showers and delousing are this way and then they give it to in the neck with gas fumes from the shower unit

Derry

Godwin's Law

ranger4

Hello, would funds in a current and sharetrading account with national irish bank be protected with the new 100k government scheme, ifnot what is the protection limits for thease accounts with nib.

Kafer

I came online to pull my money out of Rabo but you all reckon I am safe up to 40K??

Jet Black

Ive seen threads with speculation about banks rightly removed from boards, but while eating my dinner I nearly choked when reading the Herald. In the QandA section a couple of pages I seen this..

Q: How safe are my savings?
A: After this morning's move, the savings of bank depositors are now 100pc state-guaranteed.
This means that savers who have money deposited with the six Irish banks -- AIB, Bank of Ireland, Irish Life & Permanent, Anglo Irish, EBS and Irish Nationwide -- can sleep easily in their beds at night.
Q: Which banks aren't covered by the guarantee?
A: None of the foreign-owned banks are covered by the guarantee. These include Ulster Bank, NIB, First Active, Bank of Scotland, Halifax and IIB Bank.
Q: Is there anything I should be doing?
A: If you have money deposited with one of the foreign banks operating in Ireland, it might now be a good idea to switch it to one of the Irish banks covered by the State guarantee.

http://www.herald.ie/national-news/financial-crisis-everything-you-need-to-know-1486113.html

It was the last question that got me, peoples money is still guaranteed up to 100k from the 'foreign' banks.. But why was this not mentioned?
Its basicly saying get your money out of these banks now!

Anyone read this and think a bit of scaremongering is going on?

(I also like the way the it says everything you need to know, kinda like its all YOU need to know)

dotsman

heymcflyx wrote: »

It was the last question that got me, peoples money is still guaranteed up to 100k from the 'foreign' banks.. But why was this not mentioned?

Because it's not true. only banks regulated by the IRISH regulator are guaranteed (changed again today to full guarantees on the six banks)

heymcflyx wrote: »

Anyone read this and think a bit of scaremongering is going on?

A bit like your Title?;)

Anyway, what are you doing reading the hedald? Next, you'll be taking financial advise from Joe Duffy:D

stepbar

I actually bought the Herald just to see what crap was being wrote. Most of it came from Dan White (and out of his arse :rolleyes:). Nothing but gutter journalism.

Jet Black

dotsman wrote: »

Because it's not true. only banks regulated by the IRISH regulator are guaranteed (changed again today to full guarantees on the six banks)

I ment there is still 100k for the foregin banks and 100% for Irish banks.
But this was not mentioned. Why did it not say. If you have over 100k it might be a good ides to switch.
Check this out

http://www.itsyourmoney.ie/index.jsp?1nID=93&2nID=100&nID=153&aID=620

dotsman wrote: »

A bit like your Title?;)

Eh... yeah... no coment:o

dotsman wrote: »

Anyway, what are you doing reading the herald? Next, you'll be taking financial advise from Joe Duffy:D

I get it free and by god dont get me started on Joe!:D

mickydi

Does anyone know if deposits in Irish Banks in N.I. are covered too eg if someone had 100K or more in BOI Belfast or Newry is that covered in same way by Irish Gevernment as it is an Irish Institution?

dotsman

heymcflyx wrote: »

I ment there is still 100k for the foregin banks and 100% for Irish banks.

But if you look on that link, not all of them are covered - only the ones that are regulated by the Irish Regulator (ie Rabo is not covered).

The exception to that rule is NIB, which, although Danish, is covered (and there is a specific note next to it saying why).

So yes, some of the foreign banks are covered, but others are not. It's too complicated for the average hedald reader, so, as with every other story they print, it is all black and white.

ranger4

would savings and share trading account with NIB be protected by irish goverment 100k gurantee?:(

dotsman

ranger4 wrote: »

would savings and share trading account with NIB be protected by irish goverment 100k gurantee?:(

Savings are protected. Share-trading - I doubt it, as the 100K is described as the "Irish Deposit Protection Scheme". Perhaps you could contact the regulator for clarification.

ranger4

Does anyone know if NIB has confirmed its intention to the Financial regulator that it intends to participate in the deposit guarentee scheme.

hellbent

The money in your current account is covered.

My recollection about the sharetrading account is that, if your money is held in your trading account, its still in the bank, and is covered. However if you have purchased shares, these are being held by whichever broker firm that the dealing was farmed out to.
So its not covered under this deal, I think. You would've got reams of paperwork when you set up the sharetrading account; its all in it, if you can find it to read it!

dudara

Here's your answer, direct from Rabodirect

Rabobank is a member of (a) the Dutch Deposit Guarantee System and (b) the Dutch Investor Compensation Scheme, implemented by the Financial Supervision Act 2007 and related decrees. Broadly speaking, the Dutch Deposit Guarantee System deals with money - deposits in current and savings accounts - while the Dutch Investor Compensation Scheme is about securities held on your behalf by Rabobank. The Deposit Guarantee System and the Investor Protection Scheme will only become applicable if Rabobank enters into bankruptcy proceedings. However, Rabobank is a AAA-rated bank and consistently maintains these ratings. This is the highest level of creditworthiness that a bank can have. RaboDirect is the brand name of the internet bank that is part of Rabobank's Dublin branch. Accordingly RaboDirect has full AAA status.

(a) Dutch Deposit Guarantee System

The Dutch Deposit Guarantee System guarantees the interests of account holders, and applies to deposits in current and savings accounts. Under the Deposit Guarantee Scheme, if Rabobank is unable to meet its obligations to repay a customer's balance, the customer is guaranteed to be repaid 100% of the first €20,000 of his balance, with 90% of the customer's next €20,000 also being guaranteed. Accordingly, the customer has a 10% own risk on that part of his balance that is between €20,000 and €40,000. In the case of a joint account, the maximum amounts set out above apply to each joint account holder.

(b) Dutch Investor Compensation Scheme

As a supervised Dutch bank, Rabobank is required to safeguard your securities and other financial instruments. This means that your securities are separated from the assets of the bank. Even if Rabobank goes out of business, you remain fully entitled to your assets. Practically speaking, you have in that case to instruct Rabobank to transfer your assets to another broker or bank. In the unlikely event that your assets are not identifiable anymore and have become part of the bankruptcy estate, the Dutch Investor Compensation Scheme may become applicable. If Rabobank is unable to meet its obligations to repay a customer's balance, the customer is guaranteed to be repaid 100% of the first €20,000 of his balance, with 90% of the customer's next €20,000 also being guaranteed.

(c) Procedure

If Rabobank goes out of business, the Dutch Central Bank ('DCB') will start the compensation process. Certain information is available on the website of the DCB (www.dnb.nl) in relation to the Deposit Guarantee Scheme and the Investor Compensation Scheme. Parts of this site are also accessible in the English language.

(d) Which RaboDirect customers may benefit from the Deposit Guarantee Scheme and the Investor Compensation Scheme?

Subject to very limited exceptions, in the unlikely event that Rabobank enters bankruptcy proceedings, the following types of RaboDirect customers may benefit from the Deposit Guarantee Scheme and the Investor Compensation Scheme:

(i) personal customers;
(ii) sole traders;
(iii) partnerships;
(iv) companies who satisfy at least two of the following conditions:

(A) a balance sheet total that does not exceed €2,500,000 per year;
(B) a net turnover not exceeding €5,000,000 per year; and
(C) a workforce not exceeding 50 people in the financial year.

Spacedog

get your money in your hands and under your mattress ASAP! I wouldn't trust my money with some sleazy banker anymore than I'd trust them to be alone with my kids.

These banking types won't be happy until we're all dead! every last one of us!

AHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH!!!!!!!

*jumps out the nearest window*

Ogham

ranger4 wrote: »

Does anyone know if NIB has confirmed its intention to the Financial regulator that it intends to participate in the deposit guarentee scheme.

I heard that they had on Newstalk today - but I haven't checked anywhere else yet.

stepbar

mickydi wrote: »

Does anyone know if deposits in Irish Banks in N.I. are covered too eg if someone had 100K or more in BOI Belfast or Newry is that covered in same way by Irish Gevernment as it is an Irish Institution?

Yes - http://news.bbc.co.uk/2/hi/uk_news/northern_ireland/7644798.stm

unclebill98

Ulster Bank are talking to the Regulator to clarify if the new rules will apply to them. There are owned by RBS but they are regulated under Irish Law.

There confident that this will be the case. Should know soon.

unclebill98

As for UB/FA not being covered, this is not the case. There are meetings happening to clarify the situation. Should all be clear tomorrow.

There pretty sure that this will apply to them.

The main reason there sure about this is because there regulated by the Irish system.

Kafer

Thanks Dudara.

stepbar

unclebill98 wrote: »

As for UB/FA not being covered, this is not the case. There are meetings happening to clarify the situation. Should all be clear tomorrow.

There pretty sure that this will apply to them.

The main reason there sure about this is because there regulated by the Irish system.

The Government is underwriting 6 institutions entire debt and offering 100% protection on savings with same banks. I couldn't see why the Government would be running off to protect other institutions that are owned by foreign banks.

BuffyBot

Merged all these threads. I'm not sure we needed quite so many on the same topic

unclebill98

stepbar wrote: »

The Government is underwriting 6 institutions entire debt and offering 100% protection on savings with same banks. I couldn't see why the Government would be running off to protect other institutions that are owned by foreign banks.

Thats very true. But there are talking about looking after those who are regulated by the Irish rules.

Like I said, there getting answers on this and are due to find out soon.

stepbar

unclebill98 wrote: »

Thats very true. But there are talking about looking after those who are regulated by the Irish rules.

Like I said, there getting answers on this and are due to find out soon.

But they're all regulated by the Financial Regulator! If anything I would say that the best the likes of UB/ FA etc will is get is that the 100k guarentee will still apply. And TBH that would be a very good offer considering that guarentees in other EU countries were not as comprehensive as the Irish one (prior to today's announcement).

unclebill98

Well done Enda Kenny.

I feel that all banks the operate here should be covered under this new proposal. Its still not clear if this is going to be case.

I gives those banks covered and unfair advantage over those who ain't covered. After all its Irish peoples money, so why should it not be fully covered.

stepbar

You can't expect the state to pick up the tab for banks that are effectivly domiciled / regulated from another country. They have a parent bank to bail them out. Irish banks effectively didn't before yesterday. If the British, Belgian, Danish and Dutch Governments so wish to provide guarentee facilities they should be encouraged to do so but I highly doubt they will.

Diarmuid

unclebill98 wrote: »

I gives those banks covered and unfair advantage over those who ain't covered. After all its Irish peoples money, so why should it not be fully covered.

eh... The UK government guaranteed 100% NR deposits a while ago giving them an unfair advantage. Nothing was done over that, why change that precedent?

redroar1942

stepbar wrote: »

You can't expect the state to pick up the tab for banks that are effectivly domiciled / regulated from another country. They have a parent bank to bail them out. Irish banks effectively didn't before yesterday. If the British, Danish and Dutch Governments so wish to provide guarentee facilities they should be encouraged to do so but I highly doubt they will.

Needless to say you work for either BOI or AIB.

stepbar

redroar1942 wrote: »

Needless to say you work for either BOI or AIB.

And your point is......?

unclebill98

stepbar wrote: »

You can't expect the state to pick up the tab for banks that are effectivly domiciled / regulated from another country. They have a parent bank to bail them out. Irish banks effectively didn't before yesterday. If the British, Belgian, Danish and Dutch Governments so wish to provide guarentee facilities they should be encouraged to do so but I highly doubt they will.

Thats the thing, nothing UB does is ruled by anyone other than the Irish rules. NIB are ruled by the Danish laws. So its seem to be unfair that when a bank 100% follows Irish law and then is suddenly no longer protected by the new one, its unfair. Don't get me wrong, I'm not all UB this UB that, but there are lots of people whom are very tied up with there business in UB and are now simply faced with not being as protected as the other Irish banks. For all intents and purposes UB are an Irish bank. I really do not see them going under at all nor any other major Irish bank.

Diarmuid wrote: »

eh... The UK government guaranteed 100% NR deposits a while ago giving them an unfair advantage. Nothing was done over that, why change that precedent?

Cause we are not England. It is unfair, people left the other banks in droves to go to NR.

BendiBus

stepbar wrote: »

You can't expect the state to pick up the tab for banks that are effectivly domiciled / regulated from another country.

The state will happily take tax off foreign companies domiciled in Ireland so why not?

daveirl

This post has been deleted.

stepbar

BendiBus wrote: »

The state will happily take tax off foreign companies domiciled in Ireland so why not?

And pay significantly less tax then they would in their own country :rolleyes: so I think we can disregard that argument. Anyhow, a bit apples and oranges TBH and has no relivance to this thread....

Toots

redroar1942 wrote: »

Needless to say you work for either BOI or AIB.

...or Anglo, or Irish Life & Permanent (PTSB), or EBS, or Irish Nationwide. All of these are covered by the Government Guarantee.

If BOI UK operated a retail service, you can bet your ass the UK government wouldn't bail them out if they went bust! Why should the Irish government do cover foreign owned banks? The reason they've issued this guarantee (aside from trying to bring about a bit of stability in the economy), is because they are confident that these 6 Irish owned institutions are in no danger of collapse. They haven't got the same certainty about foreign owned banks. I'm not saying for a second that any of them are going to run into trouble, but the solvency of the Irish banks is regulated by the Financial Regulator. The solvency of the other banks is regulated by the regulatory body in their respective country.

redroar1942

stepbar wrote: »

And your point is......?

That your posts are a bit one eyed.I imagine you'd be singing a different tune if you worked for ulster bank etc. Please correct me if I'm wrong.

unclebill98

Toots85 wrote: »

...or Anglo, or Irish Life & Permanent (PTSB), or EBS, or Irish Nationwide. All of these are covered by the Government Guarantee.

If BOI UK operated a retail service, you can bet your ass the UK government wouldn't bail them out if they went bust! Why should the Irish government do cover foreign owned banks? The reason they've issued this guarantee (aside from trying to bring about a bit of stability in the economy), is because they are confident that these 6 Irish owned institutions are in no danger of collapse. They haven't got the same certainty about foreign owned banks. I'm not saying for a second that any of them are going to run into trouble, but the solvency of the Irish banks is regulated by the Financial Regulator. The solvency of the other banks is regulated by the regulatory body in their respective country.

Other banks!!! Most of the other banks are regulated by the Irish system? There an Irish business in ever sense of the word except there owners are not.

BOI's uk operation may well be governed by Irish law, I am not sure about that. You know as well as i do if they could get the same treatment as NR over there they would. hence why UB are trying to get the same cover offered to the rest.

Anyway this aul stuff can runs for treads. There are foreign banks governed by Irish law and there are foreign banks governed by the country there owner resides. Not sure if the Irish government will decide if this makes a difference.

As daveire pointed out there is more to the deal than deposit protection.

stepbar

redroar1942 wrote: »

That your posts are a bit one eyed.I imagine you'd be singing a different tune if you worked for ulster bank etc. Please correct me if I'm wrong.

O... so that's your point, which...... really isn't a point but a personal point regarding my posts and the content within. Doesn't warrent a comment because your post was totally irrelevant.

Now, can I ask what's your view?

stepbar

Toots85 wrote: »

...or Anglo, or Irish Life & Permanent (PTSB), or EBS, or Irish Nationwide. All of these are covered by the Government Guarantee.

If BOI UK operated a retail service, you can bet your ass the UK government wouldn't bail them out if they went bust! Why should the Irish government do cover foreign owned banks? The reason they've issued this guarantee (aside from trying to bring about a bit of stability in the economy), is because they are confident that these 6 Irish owned institutions are in no danger of collapse. They haven't got the same certainty about foreign owned banks. I'm not saying for a second that any of them are going to run into trouble, but the solvency of the Irish banks is regulated by the Financial Regulator. The solvency of the other banks is regulated by the regulatory body in their respective country.

That's an important point that Toots has raised.

stepbar

unclebill98 wrote: »

BOI's uk operation may well begoverned by Irish law, I am not sure about that. You know as well as i do if they could get the same treatment as NR over there they would. hence why UB are trying to get the same cover offered to the rest.

BOI UK and some products provided to the Post Office are fully covered under the enhanced government scheme as they are regulated from Ireland and not the UK. NR / B&B and BOI (AIB, Angle etc) are in one of the same boats at the moment so there's no comparison to be made here.

BoSI, UB etc are in a different suitation as they can effectivly tap funds from their parent bank(s). Up until yesterday the Irish banks didn't have this luxury for various reasons (which I may add understanding why is still beyond belief).