Withdrawal of KBC and its effects

tonymac

Registered User
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Am interested to hear people's thoughts etc on the fact that 2 banks have now called it a day in Ireland leaving very little competition here. I'm sure for Brendan and others including myself on here this is a well broken record re lack of competition and the reasons why they are going but going forward it is leaving AIB and BOI in a very strong position a position that needs to be prevented from happening as these same banks are entities that on past experiences need to be kept a very close eye on but also from past experience it is very unlikely they will be kept an eye on by either the state or regulatory bodies.

As Brendan has argued over the years and i agree with him the banks to be fair find it extremely hard to exercise their security here and remove people who despite efforts to help are allowed stay in their places many times longer than they should be at the expense of performing mortgages. The banks also claim they need to carry much more reserves than other countries in the ECB.


Speaking of the ECB and being part of it we are unable to take out a mortgage with say Danske bank or any other bank in the euro area. If the multi nationals employing so many here needed it you can be sure conditions regarding the banking sector would be created to make sure they didn't have to rely on our broken banking sector..
 
My understanding is that the ECB doesn't restrict new entrants rather it's the lack of a compelling market opportunity. Small market, antiquated conveyancing process, tightening spreads and difficulty enforcing security over the property.
 
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