I still have to pay 100% more interest on my mortgage than any other European

smurgen

1641 wrote: »

Inefficient ? Yet we complain when banks cut costs - cutting staff, closing branches, restricting services at branches, etc.

Couldn't give a fiddlers about irish banks.i'm with kbc.irish banks are inefficient because they're a proctected species.how about we open up the market and see what they're made of?

dev100

It's a cartel operation here. It's made to look difficult to operate. Too many banks here leads to competition and leads to lower yields. Look at how the banks lobbied to have the government cut the interest rate on An Post saving schemes.

koheim

Deagol wrote: »

If the Irish banks are making such huge profits that you are intimating in your post, can I ask you why you think no foreign banks are queuing up to do business here (ignoring the gutter press article above, the government cannot stop any European bank doing business here). ? And in fact, why several large foreign banks have left our shores?
The answer to me at least is pretty obvious.

BTW, my mortgage interest rate is 1.15%, so not sure how that is 'insane'?

Read the article! "The rate on all new agreements, fixed and variable, stood at 3.3pc. The equivalent eurozone rate was 1.83pc."

The Irish bank cartel are doing a great job!

Allinall

koheim wrote: »

Read the article! "The rate on all new agreements, fixed and variable, stood at 3.3pc. The equivalent eurozone rate was 1.83pc."

The Irish bank cartel are doing a great job!

The article is rubbish.

Theees no barrier to any foreign bank setting up here and offering mortgages at whatever rates they like, as long as they stay within Central Bank guidelines .

As I said earlier, European banks are leaving the Irish market.

The risks are too high.

All talk of cartels and government protection of Irish banks is tin foil hat stuff.

smurgen

Allinall wrote: »

The article is rubbish.

Theees no barrier to any foreign bank setting up here and offering mortgages at whatever rates they like, as long as they stay within Central Bank guidelines .

As I said earlier, European banks are leaving the Irish market.

The risks are too high.

All talk of cartels and government protection of Irish banks is tin foil hat stuff.

What banks?have links?

koheim

Allinall wrote: »

The article is rubbish.

Theees no barrier to any foreign bank setting up here and offering mortgages at whatever rates they like, as long as they stay within Central Bank guidelines .

As I said earlier, European banks are leaving the Irish market.

The risks are too high.

All talk of cartels and government protection of Irish banks is tin foil hat stuff.

Fact is: "The rate on all new agreements, fixed and variable, stood at 3.3pc. The equivalent eurozone rate was 1.83pc."

Irish banks make massive profits compared to Eurozone banks, so don understand how they get away with the overcharging.

1641

dev100 wrote: »

It's a cartel operation here. It's made to look difficult to operate. Too many banks here leads to competition and leads to lower yields. Look at how the banks lobbied to have the government cut the interest rate on An Post saving schemes.

They are really State (NTMA) saving schemes - An Post are only agents. Yes, their rates were artificially high. The NTMA are raising money for the state in Bonds at much lower rates than they are by their offering on these products. And the artificially high rates were sucking money out of banks and other institutions. There is over €3.1 billion in Prize Bonds alone. How did the NTMA rates compare to interest rates elsewhere in the eurozone?

Allinall

smurgen wrote: »

What banks?have links?

Don't have links.

Bank of Scotland left a few years ago.

Nationwide U.K. Ireland are pulling out this year.

Rabbo Direct are virtually non existent heee anymore.

As I said, they're not prepared to take the risks associated with the Irish market.

Browney7

Allinall wrote: »

Don't have links.

Bank of Scotland left a few years ago.

Nationwide U.K. Ireland are pulling out this year.

Rabbo Direct are virtually non existent heee anymore.

As I said, they're not prepared to take the risks associated with the Irish market.

Nationwide and Rabo didn't sell mortgages here so hardly a fair comparison

Cookie_Monster

koheim wrote: »

Fact is: "The rate on all new agreements, fixed and variable, stood at 3.3pc. The equivalent eurozone rate was 1.83pc."

Irish banks make massive profits compared to Eurozone banks, so don understand how they get away with the overcharging.

you're assuming though that Irish banks can borrow at the same rates as those Euro banks, I wouldn't be so sure they can because 1) scale and 2)market risk. They're smaller than many of the EU banks so will have to pay more for capital and the market risk in Ireland is higher so have to pay more for capital.

Allinall

Browney7 wrote: »

Nationwide and Rabo didn't sell mortgages here so hardly a fair comparison

I wonder why?

Wompa1

Lumen wrote: »

OK, well returning to the point earlier about the difficulty of repos, from the data linked I get a total of 2.5k PDH repos since Sept 2009, over which eight year period we've gone from 64k arrears cases outstanding to 76k arrears cases outstanding.

Why would any sane institution want to join that party?

You did a great job of laying things out. What your figures show has been something I have been thinking for a few years now. We're in a very precarious position. In most other nations, people would have had their properties repossessed and while you'd never want that to happen in an ideal world, it is required to bring a natural financial order.

smurgen

Allinall wrote: »

I wonder why?

Talk about moving the goalposts. Tell me this...why did kbc enter the market during a period of turmoil and why do they continue to work here if it's as unattractive and you portray it to be?

wordofwarning

Allinall wrote: »

I wonder why?

The info is easily available online if you are concerned about it

They set up here to get deposits for their home operations ie the Netherlands and UK.

Why would they wanted to have set up operations here for giving mortgages when we had one of the most competitive mortgage markets in the EU a decade ago

1641

smurgen wrote: »

. Tell me this...why did kbc enter the market during a period of turmoil

From Wiki :

It was established in 1973 as Irish Intercontinental Bank. In 1978 KBC Bank, which is headquartered in Brussels, acquired a 75% interest. KBC Bank acquired a full 100% shareholding in IIB in 1999, and in 2000 changed the bank's name to IIB Bank. On 27 October 2008, the 30th anniversary of KBC's full ownership, the bank was renamed KBC Bank Ireland plc.

smurgen

1641 wrote: »

smurgen wrote: »

. Tell me this...why did kbc enter the market during a period of turmoil

From Wiki :

It was established in 1973 as Irish Intercontinental Bank. In 1978 KBC Bank, which is headquartered in Brussels, acquired a 75% interest. KBC Bank acquired a full 100% shareholding in IIB in 1999, and in 2000 changed the bank's name to IIB Bank. On 27 October 2008, the 30th anniversary of KBC's full ownership, the bank was renamed KBC Bank Ireland plc.

Loads of banks establish here.when did they start offering mortgages here?

1641

What banks?have links?

Bank of Scotland (Ireland)

ACC (owned by Rabo - mortgage arm in Ireland)

Danske Bank (formerly known as northern Bank)

Re KBC -KBC began operating a branch network in 2012 [1] with a further build-out in 2014 [2]. This follows the exit of Halifax Ireland and Danske Bank from the Irish retail market, with some branches being located in former locations of those banks.(WIKI)

smurgen

Wompa1 wrote: »

You did a great job of laying things out. What your figures show has been something I have been thinking for a few years now. We're in a very precarious position. In most other nations, people would have had their properties repossessed and while you'd never want that to happen in an ideal world, it is required to bring a natural financial order.

other nations didn't have the biggest bank bailout in history relative to gdp.
the irish banks are too big relative to the size of the country and the government should do all they can to facilitate new foreign entrants to the market here. the last collapse of our lovely domestic banks still costs us thousands each in the form of USC and on top of that we should pay them extra for our mortgages too?!
Shrink AIB/BOI and all the other Irish banks until they're small enough to fail.