NatWest considering closing Ulster Bank in the Republic

NatWest actively considering closing Ulster Bank in the Republic of Ireland.

“Ulster Bank’s UK parent is actively considering winding down the lender in the Republic, as the challenge of turning around a business struggling with high costs and low profitability has become even greater as a result of the coronavirus crisis, according to sources.”

Irish Times article here: NatWest considers closing Ulster Bank in the Republic – The Irish Times

The Government of Ireland has made it virtually impossible to run a Bank with a Residential Mortgage & BTL book in this country over the last 10 years.

Yes, someone can sell you a credit card or run a current account for you. Via an App. For a Fee. Wow Wee

But traditional risk based lending with recourse has been turned on it’s head by the lack of courage, leadership and stupidity of successive Irish governments.

This is the result.

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Looks like Ulster Bank aren’t denying it with “Ulster Bank in the Republic told its 2,800-strong staff on Friday that all strategic options remain on the table”

Link to Irish Times article here: NatWest confirms review of Ulster Bank as Covid-19 bites – The Irish Times

This is spot on. The regulations costs here are very high, plus the game is to find people who won’t default as you can’t repossess.

The branch networks in all banks will be reducing fast.

And it’s only a matter of time before mortgages are sold on the apps too. Upload your revolut statements, payslips, revenue statements and your credit scores and bingo you have your answer. No need for those bricks and mortar stores, or those big broker fees.

already went through a mortgage top up this year and did it all online and with a couple of phone calls. No meetings required except with property valuer and solicitor to sign offer letter etc.

Yes it’s the way everything is going nowadays. Most things are moving online. Bank of Ireland will approve a loan of several thousand online for house renovations, etc. They just send you a DocuSign contract that you sign digitally and your money will be transferred straight into your account. Only a matter of time before they apply the same logic to larger loans and mortgages.

€18m fine on a book the size of KBCs.

I don’t think Ulster has been given a fine yet for the trackers. But this is the sort of thing that they just won’t accept in London or Edinburgh. Indeed horse trading over it may be part of the backstory behind the threat to pull out of ROI altogether.

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