Brexit ‘will see Irish banking sector grow’
BREXIT is likely to lead to a rebalancing of the profile of the Irish banking sector, with an increase in operations and a jump in the size of the sector as a whole, the Central Bank has said.
An internal report from the Bank’s Brexit Task Force, published by the regulator, noted that engagement with firms potentially looking to shift or set up operations here had levelled off ahead of the summer months.
But it said the intensity of the interaction with international firms that had already expressed interest in moving here had substantially ramped up.
There has also been an increase in the number of banks looking to engage on the potential establishment of investment firms in Ireland, the documents state.
“Based on engagements to date and depending on actual applications received, it is likely that there will be a rebalancing of the profile of the Irish banking sector, with a more even split between the total size of banking assets broken down by international wholesale banking activities versus domestic retail focused banking activities,” the Bank noted.
The Bank’s Brexit Task Force is made up of representatives from divisions across the Bank,
Warning: Gabriel Fagan
and reports to the Central Bank Commission on a quarterly basis. The Bank’s chief economist Gabriel Fagan said yesterday that the probability of a very severe Brexit can’t be ruled out.
He also said there could be knock-on effects from the UK’s EU departure that haven’t really been thought of, including questions over the legal basis for international contracts.