COMPANIES Ireland’s bad bank, which plans to buy soured commercial property loans from the Irish lenders, will be a catalyst to reshape Dublin banking, leading to mergers, possible closures and a reduction in competition in the industry, analysts and banking trade union leaders say.
Job losses have already started as the future shape of the sector starts to emerge. Last week, Ulster Bank, the Irish unit of Royal Bank of Scotland, said it would seek to cut 250 more jobs in Ireland, having already closed First Active, a Dublin mortgage bank it bought six years ago. Analysts say a larger shake-up will take place once the government’s bad bank, the National Asset Management Agency (Nama), relieves five of the six Irish-owned lenders of burdensome loans worth about €87bn (£74bn), amounting to half of Ireland’s gross national product.
