AIB, BoI fuelling credit flow, foreign banks not lending -CB … 70347.html


Funny thing is, when I spoke to Ulster Bank only last week, they swore that “of course” they are still lending. And to second time buyers as well, for a trade up :unamused:

AIB were also adament when I spoke to them this week that “of course” they are still giving mortgages to second time buyers for trade ups.

I wonder exactly what “leverage” Mr. O’Connell believes the CB has over “Irish” banks to ensure they do provide credit? Or is this just a bit of spin to blame those nasty foreigners.

To the best of my knowledge, the CB can not force a bank operating here, regardless of it’s domicile or ownership, to lend to anyone. Even if they had such a power, their track record over the last few years of intervention in the lending market is, IMHO at best, poor.

That said, if you were working for a “foreign bank” and deciding which economies you were going to lend money into, would consumers and commerce in Ireland figure high on the list of prime candidates?

Blue Horseshoe

Relaxing lending for profitable small businesses that need overdrafts e.g., to expand is one thing.

Mortgages to people on short term contracts who earn far less is another. It was the PROBLEM that banks lent Joe Builder aged 21 €500,000 based on his last 3 months of earnings to get a 2 bed in Tullamore and two 3 beds in Bulgaria.

Proper lending criteria for freelance/self-employed is far stricter, and rightly so. They are mixing up “relaxed lending” but not folowing that up with “for people who are safe/good risks”.