Hi folks,
I got the following from a postbank staff member who is a friend.
Postbank in strong position and not impacted by current market turmoil
As you have probably heard this morning, the Governments of Belgium, Luxembourg and the Netherlands have invested €11.2 billion in Fortis Bank. This action ensures the financial strength and stability of Fortis going forward.
I would like to reassure you that Postbank continues to be in a strong position and is not impacted by the current market turmoil. We are an independently managed bank with an Irish Bank Licence. We have a strong capital and liquidity position. Postbank is backed by two strong shareholders in An Post and Fortis, both now with government backing.
Through our sales and front-line staff, we are reassuring customers of our solid position. See attached the Q & A’s which we issued to sales staff today.
I would ask all of you in the company to reinforce the strong position of Postbank particularly with our customers and the public over the coming days.
Margaret Sweeney
Chief Executive
29 Sept 2008
Postbank’s shareholder Fortis gets strong Government backing
The Governments of Belgium, Luxembourg and the Netherlands have invested €11.2 billion in Fortis Bank.
This action ensures the financial strength and stability of Fortis going forward.
Postbank would like to assure its customers that it is not impacted by the recent news in relation to Fortis.
Postbank is an independently managed bank with an Irish Bank Licence and covered by the Deposit Protection Scheme.
We now have two very strong shareholders with An Post and Fortis supporting the company.
Please continue to refer the the Q & A’s which we issued last week
1. Postbank does not have any financial exposure to the sub-prime market nor do we have any mortgage risk;
2. We have seen an exponential growth in the number of customers opening accounts with Postbank. Every day we have hundreds of customers placing their confidence in Postbank;
3. Customers have instant access to their money across all our savings accounts;
4. Postbank offers simple, straightforward products, with no hidden penalties or conditions;
5. Postbank provides competitive interest rates on our savings products (both Solid Saver and Premium Saver accounts);
6. Our current account, the Everyday account, offers fee-free banking on everyday transactions;
7. Postbank services are now accessible in every one of 980 post offices nationwide. We have the largest retail banking network of any other bank in Ireland. This is a significant investment in offering convenience and accessibility to our customers;
8. Postbank has high quality and confident shareholders in:
- An Post, a trusted semi-state body has 50% shareholding in Postbank Ireland Ltd.
- Fortis which now has solid partners and shareholders in the Belgian, Dutch and Luxembourg governments.
9. Postbank takes every step necessary to safeguard all funds invested with the bank. Postbank invests the money in short-term accounts, with a very wide spread and diverse group of financial institutions. We do not invest in shares or equities and hold only a small amount with any one financial institution. We have a dedicated treasury manager who monitors and takes action on our portfolio on a daily basis.
If specifically asked if Postbank is state-guaranteed?
Postbank is NOT State Guaranteed. We are however, backed by strong shareholders in An Post and Fortis, regulated by the Irish Financial regulator, and covered by the two banking protection schemes:
the deposit protection scheme and the investor compensation scheme.
Deposit Protection Scheme
Postbank is a member of the Deposit Protection Scheme. Customers monies are protected under this scheme to a maximum of 100k.
What is the Deposit Protection Scheme? This is a scheme that can provide compensation to depositors if a credit institution is forced to go out of business. It covers deposits held with banks, building societies, credit unions and other types of deposit-taking institutions regulated by the Irish Financial Regulator.
What is covered under the scheme? The Deposit Protection Scheme covers: current accounts; demand deposit accounts; and term deposit accounts; held with banks, building societies, credit unions and other types of deposit-taking institution regulated by the Irish Financial regulator.
Who can claim under the scheme? • Ordinary customers• Sole traders and small businesses• Partnerships• Trusts• Small companies• Charities• Voluntary organisations• Accounts held in trust by solicitors (such as for personal injury awards)
What are the Compensation limits? The maximum amount you can get under the scheme is 100% of all deposits, subject to a maximum compensation payment of €100,000 for each credit institution regulated.