But the fact that the Irish public are on the hook for this debt is the problem in the first place. Private debts should have stayed private, there should have been precisely €0 gone towards saving any bank or their creditors.Who is funding the banks?? Us.. via IMF loans and central bank.... So when bank capital falls we the people are plugging the gap so therefore we the people ( including those not fortunate enough to have tens of thousands in the bank) plug the hole.
I have said this many times before, but never in so few and concise words.Transferring money abroad is a symptom of a lack of confidence in Irish banking, not the cause. It follows FROM a lack of faith in the Irish banks rather than being the cause.
Very good point! I never even thought of that.The Irish Constitution places special emphasis on the family in national life. Thus, if people act to protect their families by protecting their financial status and transfer money to safer, stronger, better regulated foreign banks, it can be argued that they are indeed acting in the ultimate national interest, as laid down by the Constitution.
Kinda. Your current account can be held with any of the 5 banks that offer current accounts in Ireland. That includes 2 non Irish banks. Namely, NIB and Ulster Bank.Money is being pulled from Irish banks and it's flowing into institutions like Rabo and Nationwide UK. But it seems to me that the latter can't operate in their present form without a functioning home-grown Irish banking system. As I understand it, it's not possible to operate an account in either of the above named banks without having an account in an Irish bank: deposits and withdrawals are mediated through the Irish banking system.
In that unlikely event, you could still transfer money to NIB and Ulster. Also, it would not be hard for Rabo etc to allow international transfers.What would happen in the event of a collapse of the Irish banks? How exactly could funds be accessed from the foreign owned banks?
I understand the concept of fractional reserve. Can you help me join the dots with the Basel accord?It is crises like this that shows how feeble and fraudulent the fractional reserve system is. Banks are in a permanent state of insolvency, but protected by governments and their central banks. The risk of this is buttered over and completely ignored in the good times, but it is a huge risk nevertheless.
I'm not sure what was going on there, but the new rules under Basel III are not due for enforcement until 2013, and some of them not until 2019.I understand the concept of fractional reserve. Can you help me join the dots with the Basel accord?
At a bank in Ireland that I can't name, I was told by a Project Manager implementing I.T. changes that were required by Basel that senior managers were signing off that all changes had been completed when in fact they hadn't - they just wanted to wash their hands of the project.
Unlikely doesn't mean won't happen..."In that unlikely event, you could still transfer money to NIB and Ulster. Also, it would not be hard for Rabo etc to allow international transfers".
Ciaran, if it's unlikely that Irish banks will go under, should we be getting our garters in a knot by joining in the present run on the banks? Maybe just some prudent diversification is all that's necessary for depositors.
This is ordinary peoples much needed savings not an investment portfolio.Maybe just some prudent diversification is all that's necessary for depositors.