DEPOSITS collected by Irish banks on the Isle of Man have slumped as savers opt for alternative options, new accounts filed by Irish banks show.
The Irish Independent says that accounts for Irish Nationwide's Isle of Man subsidiary show deposits sliding from ?1.9 billion (€2.2 billion) in 2008 to ?795m (€936m) in 2009. Despite this, Irish Nationwide (IOM) managed to make a small profit of ?2.2m in the year under review. The amount of deposits the Isle of Man operation was able to place with Irish Nationwide back in Dublin plunged from ?1.9 billion to ?795m.
Irish Nationwide has been hit with credit rating downgrades in the last year and reputational damage from the Sean FitzPatrick loans revelations. This seems to have played a part in reducing the amount of long-term deposits the island's customers have been prepared to leave with the building society.
A maturity analysis of its deposits shows a significant rise in deposits which can be released in under eight days and a reduction in the number of deposits locked up for between one and three years. The company has to make sure it stays 'liquid' enough to cover all liabilities that might arise on the next business day.
