Table shows the decline of competition in the Irish banking market and the impact of Covid on litigation by the banks and Vulture Funds
October 1, 2020
Posted by: Jim Stafford
Yesterday I posted details of a Personal Insolvency Seminar that I am presenting next week. I set out above one of the PowerPoint slides that I have prepared for the seminar. The Table shows the number of Summary Proceedings issued for judgment in the High Court by various banks and vulture funds for a number of years.
The three key takeaways from the Table is as follows;
- It shows the decline in competition in the Irish banking market following the withdrawal of ACC Bank, Anglo Irish Bank, Bank of Scotland and Danske Bank.
- It shows the rise of the Vulture Funds who have purchased the loan portfolios of the departing banks and “bad loan” portfolios of the remaining banks. In 2019 the vulture funds accounted for 71% of High Court Proceedings issued by financial institutions and the funds.
- It shows the dramatic impact that Covid has had on the issuance of court proceedings for judgments. I know that the main banks have put a “hold” on issuing any proceedings for the time being. The vulture funds have slowed down somewhat in issuing proceedings during Covid. It appears that Court proceeedings will be down approx. 75% in 2020 as a result of Covid.