Surplus Deposits Cost Banks €48 million in 2016

Discussion in 'Deposits' started by CiaranT, May 7, 2017.

  1. CiaranT

    CiaranT .

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    Last edited: May 7, 2017
    Sunday Times article here.

    - Multiple Irish banks (not all) now have surplus deposits.
    - Some surplus deposits are been parked with the CBI.
    - CBI charges -0.40% on deposits.
    - CBI earned €90m from charges on deposits in 2016. €48m from banks and €43m from the state.
    - €90m is an increase from €26m in 2015.

    This is obviously directly causing our low deposit rates. Many banks don't want more deposits, especially large corporate deposits, as the surplus deposits are now costing the banks significantly.
     
    Last edited: May 7, 2017
  2. Jim2007

    Jim2007 Frequent Poster

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    What is your point? Let the CBI generate losses because the banks are unable to find suitable investment opportunities?
     
  3. CiaranT

    CiaranT .

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    Simply pointing out the growing cost of surplus deposits to banks.

    Not at all.
     
  4. noproblem

    noproblem Frequent Poster

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    Ciaran T is only making a point and not really suggesting anything.
    I suppose it's comical really when you see banks, financial institutions, investment experts, etc, etc, with advertisements and big glossy booklets inviting us to take their products in order to increase our wealth from our surplus money. Yet they themselves just give the money to the central bank and pay them to mind it for them because they cannot find anything suitable to invest in. Seems like if you put 2 bankers/economists into a room they'd come out with 3 opinions.
     
  5. Gordon Gekko

    Gordon Gekko Frequent Poster

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    It's not that they can't find anything suitable to invest in; regulation has killed the more punchy stuff, demand just isn't there for loans, and disruptors are stealing their lunch in areas such as foreign exchange.
     
  6. noproblem

    noproblem Frequent Poster

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    Hmm, venture capitalists aren't doing too bad at finding investments. Maybe the banks need a total overhaul? Instead of just balancing the books with questionable accounting methods, there might be a need for more far sighted, tuned in people among their ranks. Are they really fit for purpose anymore? Not in this country they're not.
     
  7. Jim2007

    Jim2007 Frequent Poster

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    Really! You want the banks to use your savings for venture capital projects...
     
  8. Jim2007

    Jim2007 Frequent Poster

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    Suitable investments does actually include being legal!