Banking of Ireland

By: EconomyWatch Content   Date: 27 October 2009

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Ireland has a modern and efficient financial system, and the system is simple and convenient. Ireland is dotted with ATMs and major international credit cards and other financial instruments are widely accepted. The costs vary among banks, as do the interest rates. The rate of inflation has a major role to play in this. Irish banking is suited nicely for students as well as high flying investment bankers. Ireland was one of the first countries to qualify to join the eurozone. Euros can be bought at all banks, major bus and train stations, ferry ports and airports. Additionally, currency can also be exchanged in independent Bureaux de Change in cities and major towns.

Banking of Ireland: An Overview

The banking and financial services sector is a major contributor to the Irish economy. In 1998, banks spent more than IR£1.8 billion (€2.3 billion), paying over IR£640 million (€813 million) to the Exchequer in taxes. The sector is also a major employer in Ireland, providing over 40,000 jobs. It is estimated that the contribution of banks to the Irish economy accounted for 3.5 % of the GNP in 1998.

The Irish banking system consists of:

·        Retail banking: Retail banking involves taking deposits and advancing overdrafts and other loans, dealing with the personal, small business, farming, non-profit, corporate and government sectors.

·        Wholesale banking: Wholesale banking tends to involve dealing with large corporate and government entities and includes the provision of financial consultancy including advice on dealings with capital markets.

 

Banking of Ireland: Other Services

Irish banks offer a multitude of services like:

·        mortgages

·        life assurance

·        pensions & long term savings products

·        insurance brokerage

·        stockbroking

·        fund management

Banks in Ireland continue to play an important role in the Irish financial sector and its economy. The role is evolving, with banks offering an expanded range of products, developing new delivery channels and generally operating in an increasingly competitive environment. The banks face stiff competition on assets from all financial services and investment banking establishments.

Liberalization and technological advances in the financial sector are the main development factors generating new competitive environments for banks in Ireland and the rest of the globe. Both factors facilitate entry into the market, possibly in a niche capacity, targeting the most profitable business. This has forced banks to price their range of products based on risk and getting maximum ROI.

 

 


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Most Popular in Ireland Banks (Irish Banks)

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