Tuesday 6 December 2016

Anglo chairman calls for 'decisive action' as deposits shrink by €13bn

Published 23/11/2010 | 05:00

Alan Dukes yesterday at the Compliance in Finance Conference in Dublin
Alan Dukes yesterday at the Compliance in Finance Conference in Dublin

ANGLO Irish Bank has lost €13bn in deposits this year and "could" need further state support as part of the banking bailout, chairman Alan Dukes admitted yesterday.

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He called on the Government to take "decisive action" and put more money into the banks rather than establishing a contingency fund that could be accessed later.

Anglo's deposit base fell by just €4bn in the first half of the year, but Mr Dukes yesterday told the Irish Independent year-to-date losses were now running at €13bn.

Most of the withdrawals are understood to be corporate, with money flowing out after Anglo's ratings downgrades. The data implies that Anglo's deposit base has shrunk to about €14bn. Sources say there is "very little" corporate money left. Bank of Ireland recently confirmed it had lost €10bn in corporate deposits over August and September and the flight in deposits has made all Ireland's banks increasingly dependent on funds from the European Central Bank.

Mr Dukes said Anglo "could" end up getting fresh money as part of this bailout, a development that would push Anglo's total taxpayer costs above the €29bn-€34bn already pencilled in.

"I'm worried that we'll have a slowly slowly piece by piece thing, whereas I think what we need at this stage is a very strong decisive approach," he said, dismissing the idea of a contingent fund for banks. "If we're going to get a substantial amount of outside assistance it should be used to arrive at a point where we have some banks with cleaned up balance sheets that can actually function as banks," he stressed.

Irish Independent

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