If, like me, you had a banking relationship with either of Ulster Bank or KBC Bank, you cannot have helped notice the upheaval this year of their closure and departure from the Irish banking sector. One departure might be ascribed to the fortunes of that particular bank. Two departures suggests a wider trend and one that has been gathering pace since the global financial crisis (GFC) years of 2007-8, not just in Ireland but across Europe.
The traditional banking sector has undergone significant changes since the GFC. These have primarily been brought about by increased and far-reaching regulation, increased capital reserve requirements and marked significant reduction in risk appetite, particularly in areas in which they were heavily leveraged.
