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

Jimbo · 30-09-2008 2:10pm

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

mountainyman · 30-09-2008 3:10pm

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 · 30-09-2008 5:47pm

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 · 30-09-2008 6:44pm

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

Jet Black · 30-09-2008 6:47pm

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 · 30-09-2008 6:54pm

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 · 30-09-2008 7:02pm

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 · 30-09-2008 7:03pm

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 · 30-09-2008 7:19pm

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 · 30-09-2008 7:27pm

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 · 30-09-2008 7:27pm

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

dotsman · 30-09-2008 7:36pm

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 · 30-09-2008 7:39pm

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

hellbent · 30-09-2008 7:59pm

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 · 30-09-2008 8:06pm

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 · 30-09-2008 8:10pm

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 · 30-09-2008 8:19pm

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 · 30-09-2008 8:25pm

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 · 30-09-2008 8:52pm

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 · 30-09-2008 8:58pm

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 · 30-09-2008 9:25pm

Thanks Dudara.

stepbar · 30-09-2008 10:52pm

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 · 30-09-2008 10:55pm

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

unclebill98 · 30-09-2008 10:58pm

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 · 30-09-2008 11:10pm

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 · 01-10-2008 7:22pm

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 · 01-10-2008 7:41pm

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 · 01-10-2008 7:46pm

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 · 01-10-2008 7:53pm

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 · 01-10-2008 8:32pm

redroar1942 wrote: »

Needless to say you work for either BOI or AIB.

And your point is......?

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

Comments