Why has the banking sector grown so much in Ireland? Experts say it is due to two events; on the one hand, Brexit and, on the other, the pandemic.
The Covid-19 pandemic brings uncertainty and financial obstacles both for businesses and consumers.
The banking sector and financial institutions have been quick to respond with measures designed to provide support to struggling businesses and also to protect consumers.
Brexit has been another big boost for the banking sector in Ireland. A recent interview Fiona Gallagher, president of the Federation of International Banks of Ireland (FIBI) has said “While Ireland’s international financial services sector has steadily grown over the decades, the UK’s exit from the EU has accelerated this trend, with Ireland now one of the key EU hubs for international banking and capital markets activity”
Pablo Vallejo, formerly of BBVA and a member of ISEA, notes how Dublin has proven to be the most popular site for the relocation of financial services firms post Brexit including blue-chip names in the banking sector such as Barclays Bank, State Street, Goldman Sachs, JP Morgan and Bank of America, all boosting their operations in the city.
The recent report produced by the Banking and Payments Federation Ireland says Ireland is now the eighth largest exporter of financial services in the world and is the fifth largest exporter of financial services in Europe.
The financial services sector employs 50,000 people here, with 29,000 of those working for foreign owned firms. That is very good news for the country in contrast to the situation of many other countries that have seen how unemployment has grown.