Menu
17/09/2008
NI Economy Positive Despite 'Crisis'
It has been claimed that Northern Ireland's economy should be well able "to avoid the worst of the global financial downturn", despite growing national concerns over banking and finance.
As financial giant Halifax Bank of Scotland, (HBOS) the UK's largest mortgage provider, was today being hit hard by a whirlwind of financial speculation, locally, First Trust Bank is saying that as public expenditure is higher in Northern Ireland than in Britain, this should safeguard local living standards.
First Trust says talk of a serious recession in Ulster is therefore "dangerously misleading".
The bank said today that consumer confidence will "remain fragile" but compared to other parts of the world, that Ulster's economy is "not in bad shape".
The news comes as Halifax, which has one of its busiest UK call centres located in Belfast, faces huge levels of speculation.
But instead of faltering, it has now emerged that Halifax is on the brink of a 'major coup' by brokering a merger to create a new, enlarged business.
HBOS has confirmed it is in advanced talks with Lloyds TSB about creating a UK retail banking giant worth £30bn.
The Government has also said it will over-rule any concerns that competition authorities may raise.
The BBC is reporting that the Prime Minister is even involved in negotiating the deal, and has said that it has the blessing of UK authorities.
The national concerns surrounding parent company HBOS - which has £160bn in deposits and £256bn of outstanding mortgages - are said to be in part rumour, and only part fact.
A series of major US institutions previously thought 'invincible', such as Bear Stearns, Fannie Mae and Freddie Mac, Merrill Lynch, Lehman Brothers and now AIG have already run into difficulties, and traders simply asked "Who next?" and then seized on the slightest hint of any real - or perceived - weakness in the British banks to sell into a plummeting market.
Later, confidence was further undermined with the news that AIG Life had suspended withdrawals from two of its British funds yesterday, after being inundated with requests for redemptions following news that the insurer is on the verge of collapse.
This is the first time during the credit crunch that retail investment funds, rather than bank deposits, have been threatened.
Given its exposure to the property market the turbulence centred on Halifax Bank of Scotland Group (HBOS): shares in the bank were down almost 40% at one point yesterday, although it ended the day with a fifth of its worth destroyed, while the Royal Bank of Scotland lost a tenth of its value.
The FTSE 100 also fell to a three-year low - more than £500bn was been wiped off UK shares this year.
News of a merger, valuing HBOS shares at 300 pence, came initially from BBC Business Editor Robert Peston.
(BMcC)
As financial giant Halifax Bank of Scotland, (HBOS) the UK's largest mortgage provider, was today being hit hard by a whirlwind of financial speculation, locally, First Trust Bank is saying that as public expenditure is higher in Northern Ireland than in Britain, this should safeguard local living standards.
First Trust says talk of a serious recession in Ulster is therefore "dangerously misleading".
The bank said today that consumer confidence will "remain fragile" but compared to other parts of the world, that Ulster's economy is "not in bad shape".
The news comes as Halifax, which has one of its busiest UK call centres located in Belfast, faces huge levels of speculation.
But instead of faltering, it has now emerged that Halifax is on the brink of a 'major coup' by brokering a merger to create a new, enlarged business.
HBOS has confirmed it is in advanced talks with Lloyds TSB about creating a UK retail banking giant worth £30bn.
The Government has also said it will over-rule any concerns that competition authorities may raise.
The BBC is reporting that the Prime Minister is even involved in negotiating the deal, and has said that it has the blessing of UK authorities.
The national concerns surrounding parent company HBOS - which has £160bn in deposits and £256bn of outstanding mortgages - are said to be in part rumour, and only part fact.
A series of major US institutions previously thought 'invincible', such as Bear Stearns, Fannie Mae and Freddie Mac, Merrill Lynch, Lehman Brothers and now AIG have already run into difficulties, and traders simply asked "Who next?" and then seized on the slightest hint of any real - or perceived - weakness in the British banks to sell into a plummeting market.
Later, confidence was further undermined with the news that AIG Life had suspended withdrawals from two of its British funds yesterday, after being inundated with requests for redemptions following news that the insurer is on the verge of collapse.
This is the first time during the credit crunch that retail investment funds, rather than bank deposits, have been threatened.
Given its exposure to the property market the turbulence centred on Halifax Bank of Scotland Group (HBOS): shares in the bank were down almost 40% at one point yesterday, although it ended the day with a fifth of its worth destroyed, while the Royal Bank of Scotland lost a tenth of its value.
The FTSE 100 also fell to a three-year low - more than £500bn was been wiped off UK shares this year.
News of a merger, valuing HBOS shares at 300 pence, came initially from BBC Business Editor Robert Peston.
(BMcC)
Related Northern Ireland News Stories
Click here for the latest headlines.
07 December 2021
Bank of Ireland Launches Digital Banking Video Tutorial Series
The Bank of Ireland (BoI) has announced the launch of a new video tutorial series to make digital banking safer and more accessible for customers young and old.
Bank of Ireland Launches Digital Banking Video Tutorial Series
The Bank of Ireland (BoI) has announced the launch of a new video tutorial series to make digital banking safer and more accessible for customers young and old.
21 November 2024
UK Education Ministers Meet In Northern Ireland
Northern Ireland hosted the fifth UK Education Ministers' Council (EMC) meeting at Laurelhill Community College in Lisburn.
UK Education Ministers Meet In Northern Ireland
Northern Ireland hosted the fifth UK Education Ministers' Council (EMC) meeting at Laurelhill Community College in Lisburn.
30 October 2023
Historic Portrush Bank Transformed With £2.5m Investment
Northern Ireland's largest hotel group, Andras Hotels, has invested £2.5 million to restore the former Belfast Banking Corporation building in Portrush. The listed building, originally built in 1898, has been refurbished and converted to serviced apartments and a café bar.
Historic Portrush Bank Transformed With £2.5m Investment
Northern Ireland's largest hotel group, Andras Hotels, has invested £2.5 million to restore the former Belfast Banking Corporation building in Portrush. The listed building, originally built in 1898, has been refurbished and converted to serviced apartments and a café bar.
01 April 2019
Rural Banks Face Closure Risks Amid ATM Thefts- SDLP
The theft of cash machines is a crime that has affected many communities in Northern Ireland recently, with an upsurge in the number of ATMs being ripped from the walls of commuercial premises using diggers. An SDLP representative has now warned that banks in rural areas may shut their doors due to a spate of robberies.
Rural Banks Face Closure Risks Amid ATM Thefts- SDLP
The theft of cash machines is a crime that has affected many communities in Northern Ireland recently, with an upsurge in the number of ATMs being ripped from the walls of commuercial premises using diggers. An SDLP representative has now warned that banks in rural areas may shut their doors due to a spate of robberies.
25 January 2019
SF Urge Santander To Reconsider Antrim Branch Closure
A Sinn Fein MLA is urging commercial banking group Santander to rethink plans to shut its Antrim High Street branch at the end of May. Declan Kearney's comments follow the company's announcement of a UK-wide reshuffle which will see 140 stores closed, as a response to shifts in consumer demand.
SF Urge Santander To Reconsider Antrim Branch Closure
A Sinn Fein MLA is urging commercial banking group Santander to rethink plans to shut its Antrim High Street branch at the end of May. Declan Kearney's comments follow the company's announcement of a UK-wide reshuffle which will see 140 stores closed, as a response to shifts in consumer demand.
-
Northern Ireland WeatherThis Evening and Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
