Low interest rates, new technologies and the impact of Covid-19 are having an adverse impact on the banking sector here, Minister for Finance Paschal Donohoe has warned. Mr Donohoe said the current low interest rate environment had depressed banking revenues. AIB is already charging high-net worth customers interest on their savings, a reflection of the ultra-low rate environment, while Bank of Ireland indicated it also plans to start charging negative interest rates on savings above a certain limit. ExitThe imminent exit of Ulster Bank and KBC from the Irish market is likely to significantly reduce competition further. Banks here have already been criticised for charging customers higher interest rates on basic financial products, such as mortgages, than their European counterparts.

Source: The Irish Times May 10, 2021 15:00 UTC