DOCSLIB.ORG

Starting at Zero You've Nothing to Lose

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Starting at Zero You've Nothing to Lose SMALl BUSINESS SNAP HAPPY 15.0156.20.06.14 14/ 11 Money Elite camera was Eamonn Quinn’s picture-perfect present p13 thesundaytimes.ie Starting at zero you’ve nothing to lose JUSTINFARRELLY With interest rates at record lows, it’s time for homeowners, investors and savers to get IF SECURITY IS NUMBER ONE, smart, writes Mark Channing YOU HAVE TO HOUSEHOLDS are being urged interest charged on a tracker ACCEPT THE to review their savings, invest- mortgage. ments and mortgages as David Quinn, managing CURRENT RATES interest rates fall to historic director of Investwise, a fee- lows. This should be good news based adviser, said: “If you for borrowers but experts warn choose the best deposit that only homeowners lucky account, your after-tax return enough to have tracker mort- should be higher than the gages will benefit from the rate interest on your tracker, so you cut. are better off setting the money The European Central Bank aside than overpaying the (ECB) entered uncharted terri- mortgage.” tory by slashing interest rates Permanent TSB, for O’Hanlon. She advised invest- from 0.25% to a record low of example, pays 2.25% for ment of small amounts regu- 0.15%. It is the latest in a series depositsofat least€5,000fixed larly, rather than a lump sum of rate cuts aimed at stimu- for terms of 16-24 months, or all at once, to minimise the lating the European economy 1.3% after deposit interest impact of volatility. and warding off the threat of retention tax (Dirt). This com- Experts urge caution over deflation. pares with rates of structured products such as There are about 400,000 0.65%-0.9% charged on the tracker bonds, which provide trackers in Ireland and repay- best tracker mortgages. capital protection but tie you ments on these loans will fall as Overpayments would be a into a minimum investment a result of the cut. Variable rate bad move for those planning to period and can have charges mortgage holders are not so borrow more to move house. which may not be obvious. A lucky as banks don’t have to Permanent TSB, Bank of Ire- low-risk multi-asset fund that pass on ECB cuts to these cus- land and Ulster Bank allow holds a portion of equities, tomers.Theratecutisbadnews movers to take trackers to their bonds and cash could be a for savers who will see interest next house but additional bor- better bet, although your cap- paid on deposits fall. rowingmustbeat ahigher var- ital would not be protected With interest rates set to stay iable rate of interest. It is in Kelly said there could be tax close to zero for a protracted movers’ interest to keep as advantages from investing in period, we get advice for bor- muchoftheoveralldebtaspos- funds. Gains are subject to rowers, savers and investors. sible on tracker terms. an exit tax of 41%, the same Colm Kelly of Cregan Kelly as Dirt. However, unlike BORROWERS O’Brien, a financial adviser in Dirt,which is deducted annu- Someone with a €300,000 Swords, Co Dublin, said: “It’s ally, the exit tax is payable only tracker mortgage will save better for movers to have the on encashment or after eight about €20 a month from the money in savings and borrow years, by which time the gov- new cut in rates, the latest in a as little as possible at the vari- ernment may have cut the tax. series of payment reductions. able rate.” “You will get hit with the tax Liam FergusoN of FergusoN Overpayments can make but only at the rate that applies & Associates, a mortgage sense in some circumstances. on encashment or after eight broker,said:“In2008someone “If you’re in negative equity years, so there is an eight-year with a €300,000 mortgage there is some merit in over- O’Connor has turned to the stock market and believes that consistent regular investing over time will do better than leaving your money sitting in a deposit account window for the tax to be over 25 years would have beeN paying,” said Kelly. “Psycho- reduced,” he said. paying €1,798 per month. Fol- logically it can make a big Mark O’Byrne of metal bro- lowingthislatestcuttherepay- difference to people to pay rate is fixed. Rachel Doyle of could be worth considering.” can.” Permanent TSB and KBC so you earn slightly more budget when Dirt was kers GoldCore said gold is a ment is €1,144 per month — down their debts as quickly as the Professional Insurance Allied Irish Banks has a two- Bank pay 2% for easy-access interest than what banks are increased to 41%. “It was like worthwhile investment when more than €650 less.” possible.” Brokers Association said pre- year fix at 4.75% and a three- deposits. Fixed rate accounts, currently paying. someone flicked a switch. interest rates are low, although Lenders are telling tracker Frances O’Hanlon of FOH dicting the direction of interest year fix at 4.95% compared where you lock your money The downside is you have to Once Dirt increased along with it has lost about a third of its customers to take advantage of Financial, an adviser in rates “is fraught with uncer- with a standard variable rate of away, pay slightly more. PTSB lock your money away for the falling interest rates, a lot of value sincepeakingat$1,921an the rate cuts to overpay their Clonmel,CoTipperary,agreed. tainty”, although she believes 4.4%. Bank of Ireland charges pays 2.25% interest on its 18, 16 longer periods, increasing the clientsrealisedthey had to start ounce in September 2011. mortgages. This should allow “If you overpay now, you have it is reasonable to expect rates 4.69% fixed for two years and and 24-month accounts. risk that the value of your cash looking elsewhere,” he said. “Gold has always beeN criti- them to become mortgage- made considerable inroads on to increase over the next few 4.89% fixed for three years for Regularsaverscanearnupto will be eateN away by inflation. Would-be investors need to cised due to its lack of yield, free ahead of schedule. The your mortgage by the time years. existing customers, compared 4%with Nationwide UK (Ire- TheNationalSolidarityBond assess their attitude to risk unlike stocks, bonds and banks’ advice is self-serving interest rates go up again,” she FergusoNsaidfixingcouldbe with a variable rate of 4.5%. land) on monthly savings of up pays 6% tax-free after four before deciding what kind of deposits,” said Byrne. “How- because they would benefit by said. “Just be mindful that, worthwhileifyoudonotplaNto to €1,000. “You can get slightly years, or an annual rate of investment suits them. ever, giveN the ECB’s historic getting trackers off their books when you pay it into your move and are unlikely to SAVERS higher rates for regular savers’ 1.47%. The 10-year bond pays “If you’re happy to take on rate cut and the continuation of as quickly as possible because mortgage, you’re not going to overpay your mortgage. Savers have seeN returns accounts but rates tend to drop 30% or 2.66% annually. an element of risk, you have to ultra loose monetary policies, these mortgages are loss mar- get it back out again.” “In some instances, you can dwindle, with 2.25% the most as money accumulates in these look towards stock markets many investors and depositors kets or only marginally profit- The question for home- fix for a couple of years at the they can hope to earn. They accounts,” said McInerney. INVESTORS and the equity-based funds, will now rightly see non- able for lenders. owners on variable rates is same interest rate as the stan- have also beeN punished by State Savings are another McInerney reported a change but you must take a minimum yielding gold as an increasingly Overpaying does not make whether to switch to a fixed dard variable,” he said. higher taxes, with Dirt at 41% option. Returns are tax-free in savers’ mindset after the last of a five-year view,” said attractive diversification.” sense for homeowners with rate. These are generally more “GiveN that it’s unlikely that and those earning more spare cash, however, if it would expensive but would pay off if variable rates are going to come than €3,174 a year in interest earn more on deposit than the interest rates rise while the down any time soon, fixing paying 4% pay related social insurance. Experts say rates are likely to New and existing deposit rates % 5 fall even more. Shane McIn- Stock market gives me more bang for my buck erney of Deloitte Pensions & Investments said: “Interest LOW returns and high taxes have led gives him up-to-date analysis of stocks a long- term view. There are going to be 4 rates have beeN falling consist- Cormac O’Connor to seek an alternative and markets. months which aren’t as good as others ently now at a rate of about 25 to bank deposits. In O’Connor’s view, consistent regular and that’s where discipline is needed. You basis points a month and I He decided to take control of his money investing over time will do better than have to stick with the strategy even 3 imagine you are going to see by investing in the stock market. leaving your money sitting in a deposit through a bit of turbulence,” he said. New business them drop further.” “I had money on deposit which was account.
Load more

Recommended publications
  • Bank of Ireland Emer Lang [email protected] / +353 1 6148925 Price: 9C
    www.davy.ie Bloomberg: DAVY<GO> Research: +353 1 6148997 Institutional Equity Sales: +353 1 6792816 Davy Research November 4, 2011 Rating: OUTPERFORM Issued 04/11/11 Equity Report: Company update Previous: UNDER REVIEW Issued 04/01/11 Bank of Ireland Emer Lang [email protected] / +353 1 6148925 Price: 9c Share Price Performance 300 200 Making steady progress 180 160 140 200 120 100 80 100 60 Recapitalised to withstand the anticipated challenges 40 20 • The Irish PCAR/PLAR process has credibly recapitalised Irish 0 0 Oct 08 May 09 Oct 09 Apr 10 Oct 10 Apr 11 Oct 11 BKIR price (c) Rel to FTSE E300 banks index (rhs) banks to deal with anticipated losses from impairments and Key financials (€m) deleveraging. The Irish economy remains largely on track, Year end Dec11E Dec12F Dec13F Net Interest Income 1580.0 1530.0 1740.0 although risks remain; our GDP estimates are broadly in line Other Income 550.0 660.0 730.0 with base PCAR. Total Income 2130.0 2190.0 2470.0 Total Costs 1640.0 1600.0 1560.0 • Unemployment, a key driver of mortgage arrears, is running Bad Debts 1723.0 1200.0 900.0 Associates 35.0 45.0 45.0 1% higher (14.4% versus 13.4%) but looks to have stabilised. Exceptionals 1867.0 -500.0 0.0 FRS3 PBT 669.0 -1065.0 55.0 • Our central case puts Bank of Ireland (BKIR) non-NAMA EPS Basic 4.0 -3.5 -0.5 impairments at €6.7bn. Our PLAR estimate is €1.7bn, EPS Diluted (Adj) -8.6 -2.2 -0.5 Total Assets 150627 136001 129681 including €1.2bn for disposals of €10bn (€5bn has already Ord.
    [Show full text]
  • Causes of the Systemic Banking Crisis in Ireland
    MISJUDGING RISK: CAUSES OF THE SYSTEMIC BANKING CRISIS IN IRELAND REPORT OF THE COMMISSION OF INVESTIGATION INTO THE BANKING SECTOR IN IRELAND MARCH 2011 PUB01B01-P PUB00156-001 TABLE OF CONTENTS EXECUTIVE SUMMARY I Introduction i Preconditions for the Crisis i Contagion ii Consensus iii Flawed lending: Anglo and INBS iv The Herd: Other Banks v The Silent Observers: External Auditors vi The Enablers: Public Authorities vii Policy with Insufficient Information: the Guarantee ix Some Lessons ix ABBREVIATIONS XI CHAPTER 1- MANDATE, METHOD AND BACKGROUND 1 1.1 Mandate 1 1.2 Previous Scoping Studies 1 1.3 International Developments 2 1.4 Main Issue of this Report 5 1.5 Assigning Blame 6 1.6 Herding and Groupthink in Financial Markets 7 1.7 Method of Work 10 CHAPTER 2 - THE PROBLEMS WITH THE BANKS 12 2.1 Introduction 12 2.2 Setting the Scene 12 PUB01B01-P PUB00156-002 2.3 Market Shares Threatened 20 2.4 Business Models and Strategies 22 2.5 Governance and Procedures 26 2.6 Remuneration 29 2.7 Lending and Credit 31 2.8 Funding, Liquidity and Capital 38 2.9 Risk Management 44 2.10 Internal Audit 47 2.11 Behavioural Factors 48 2.12 To Sum Up - the Mechanism of Contagion 49 CHAPTER 3 - EXTERNAL AUDITORS 51 3.1 The Issue 51 3.2 Background 51 3.3 The Statutory Audit and Going Concern 53 3.4 Auditing Irish Banks 53 3.5 Audit Limitations and an “Expectations Gap” 54 3.6 Other Communication by Bank Auditors 55 3.7 General Auditor Concerns in early 2008 56 3.8 Auditor Bank-Specific Communication with Authorities 57 3.9 Auditor Communication with their
    [Show full text]
  • Nationwide Building Society
    OFFERING CIRCULAR dated 15 June 2020 Nationwide Building Society (incorporated in England under the Building Societies Act 1986, as amended) £750,000,000 Reset Perpetual Contingent Convertible Additional Tier 1 Capital Securities Issue price: 100.00 per cent. Nationwide Building Society (the "Society") expects to issue £750,000,000 Reset Perpetual Contingent Convertible Additional Tier 1 Capital Securities (the "Securities") on or about 17 June 2020 (the "Issue Date"). The Securities will bear interest, in accordance with the conditions of issue of the Securities (the "Conditions"), on their nominal amount from (and including) the Issue Date at the applicable Interest Rate described below. Subject to cancellation as set out in the Conditions, interest shall be payable on the Securities semi-annually in arrear in equal instalments on 20 June and 20 December in each year (each, an "Interest Payment Date"), commencing on 20 December 2020 (with a long first interest period). For each Interest Period which commences prior to 20 December 2027 (the "First Reset Date"), the Interest Rate shall be 5.750 per cent. per annum. For each Interest Period which commences on or after the First Reset Date, the Interest Rate shall be the sum of the Benchmark Gilt Reset Reference Rate (as defined in the Conditions) in relation to that period and the initial credit spread of 5.625 per cent. per annum. Any payment of interest may be cancelled (in whole or in part) in the sole discretion of the Society, and shall be cancelled (in whole or in part) in certain circumstances described herein, including (without limitation) if the Society has insufficient distributable items available for paying interest or for regulatory or solvency reasons.
    [Show full text]
  • Nationwide Building Society
    OFFERING CIRCULAR dated 20 September 2019 Nationwide Building Society (incorporated in England under the Building Societies Act 1986, as amended) £600,000,000 Reset Perpetual Contingent Convertible Additional Tier 1 Capital Securities Issue price: 100.00 per cent. Nationwide Building Society (the “Society”) expects to issue £600,000,000 Reset Perpetual Contingent Convertible Additional Tier 1 Capital Securities (the “Securities”) on or about 24 September 2019 (the “Issue Date”). The Securities will bear interest, in accordance with the conditions of issue of the Securities (the “Conditions”), on their nominal amount from (and including) the Issue Date at the applicable Interest Rate described below. Subject to cancellation as set out in the Conditions, interest shall be payable on the Securities semi-annually in arrear in equal instalments on 20 June and 20 December in each year (each, an “Interest Payment Date”), with a short first interest period to 20 December 2019. For each Interest Period which commences prior to 20 June 2025 (the “First Reset Date”), the Interest Rate shall be 5.875 per cent. per annum. For each Interest Period which commences on or after the First Reset Date, the Interest Rate shall be the sum of the Benchmark Gilt Reset Reference Rate (as defined in the Conditions) in relation to that period and the initial credit spread of 5.390 per cent. per annum. Any payment of interest may be cancelled (in whole or in part) in the sole discretion of the Society, and shall be cancelled (in whole or in part) in certain circumstances described herein, including (without limitation) if the Society has insufficient distributable items available for paying interest or for regulatory or solvency reasons.
    [Show full text]
  • Stress Testing the UK Banking System: 2017 Results
    November 2017 Stress testing the UK banking system: 2017 results On 5 July 2018, Table A5C in Annex 5 was amended to correct a Bank of England calculation used to produce the impairment rates. November 2017 Stress testing the UK banking system: 2017 results Background information on the FPC and the PRA The Financial Policy Committee (FPC) was established under the Bank of England Act 1998, in amendments made to that Act by the Financial Services Act 2012. The legislation establishing the FPC came into force on 1 April 2013. The objectives of the Committee are to exercise its functions with a view to contributing to the achievement by the Bank of England of its Financial Stability Objective and, subject to that, supporting the economic policy of Her Majesty’s Government, including its objectives for growth and employment. The responsibility of the Committee, with regard to the Financial Stability Objective, relates primarily to the identification of, monitoring of, and taking of action to remove or reduce, systemic risks with a view to protecting and enhancing the resilience of the UK financial system. The FPC is accountable to Parliament. The Prudential Regulation Authority (PRA) is a part of the Bank of England and responsible for the prudential regulation and supervision of banks, building societies, credit unions, insurers and major investment firms. The PRA has two primary objectives: to promote the safety and soundness of these firms and, specifically for insurers, to contribute to the securing of an appropriate degree of protection for policyholders. The PRA also has a secondary objective to facilitate effective competition.
    [Show full text]
  • Financial Stability Report November 2018 | Issue No
    Financial Stability Report November 2018 | Issue No. 44 Financial Stability Report Presented to Parliament pursuant to Section 9W(10) of the Bank of England Act 1998 as amended by the Financial Services Act 2012. November 2018 © Bank of England 2018 ISSN 1751-7044 Financial Stability Report November 2018 | Issue No. 44 The primary responsibility of the Financial Policy Committee (FPC), a committee of the Bank of England, is to contribute to the Bank of England’s financial stability objective. It does this primarily by identifying, monitoring and taking action to remove or reduce systemic risks, with a view to protecting and enhancing the resilience of the UK financial system. Subject to that, it supports the economic policy of Her Majesty’s Government, including its objectives for growth and employment. This Financial Stability Report sets out the FPC’s view of the outlook for UK financial stability, including its assessment of the resilience of the UK financial system and the main risks to UK financial stability, and the action it is taking to remove or reduce those risks. It also reports on the activities of the Committee over the reporting period and on the extent to which the Committee’s previous policy actions have succeeded in meeting the Committee’s objectives. The Report meets the requirement set out in legislation for the Committee to prepare and publish a Financial Stability Report twice per calendar year. In addition, the Committee has a number of duties, under the Bank of England Act 1998. In exercising certain powers under this Act, the Committee is required to set out an explanation of its reasons for deciding to use its powers in the way they are being exercised and why it considers that to be compatible with its duties.
    [Show full text]
  • Nationwide Building Society
    BASE PROSPECTUS NATIONWIDE BUILDING SOCIETY (incorporated in England and Wales under the UK Building Societies Act 1986, as amended) $20,000,000,000 Senior and Subordinated Medium-Term Notes Due Twelve Months or More from Date of Issue ______________ We may issue at various times up to $20,000,000,000 aggregate principal amount outstanding at any time of senior or subordinated medium-term notes denominated in U.S. dollars or in other currencies or composite currencies. The notes will be issued in series and each series will be the subject of final terms (each “Final Terms”). We are privately placing the notes on a delayed or continuous basis to the placement agents named below (the “Placement Agents”) or through the Placement Agents to qualified institutional buyers as described in this Base Prospectus under the section entitled “Plan of Distribution.” This document constitutes a base prospectus (“Base Prospectus”) for the purposes of Directive 2003/71/EC (as amended, including by Directive 2010/73/EU) and includes any relevant implementing measure in a relevant Member State of the European Economic Area) (the “Prospectus Directive”). Application has been made to the United Kingdom Financial Conduct Authority (the “FCA”), in its capacity as competent authority for the purposes of the Prospectus Directive and relevant implementing measures in the United Kingdom (the “UK Listing Authority”) for the document to be approved as a Base Prospectus issued in compliance with the Prospectus Directive and relevant implementing measures in the United Kingdom for the purpose of giving information with regard to the issue of notes issued under this program.
    [Show full text]
  • Terms of Business
    STRICTLY PRIVATE & CONFIDENTIAL Terms of Business Aria Capital Limited is regulated by the Central Bank of Ireland (Regulated Business only) Aria Capital | Suite 3, The Cubes 3 | Beacon South Quarter | Sandyford | Dublin 18 | Ireland t (+353 1) 685 4100 | f (+353 1) 443 0444 | w www.aria-capital.ie Terms of Business Statement This Terms of Business Statement (“Terms”) sets out the basis on which Aria Capital Limited (“Aria Capital”) will provide business services to you in relation to activities that • Aviva are regulated by the Central Bank of Ireland. Please read these Terms carefully and if • Caledonian Life you have any queries we will be pleased to address them. • Canada Life • Friends First You and we are bound by these Terms if we accept your application to open an account • Irish Life with us. These Terms apply to our relationship and services generally; where additional • New Ireland and specific terms apply to a particular investment you should consider these carefully • Zurich before proceeding. Where there is any inconsistency between these Terms and such specific terms and conditions relating to a particular investment the provisions of those Aria Capital has an agency appointment in place with all of these firms with the specific terms and conditions will apply. exception of Canada Life. Please note that these Terms include the Client Information Record & Application Form Aria Capital considers itself to be offering a fair analysis of the “protection market” as it and the Portfolio Recommendation. accesses benchmarking information for all the major insurance companies that offer protection products to Irish consumers.
    [Show full text]
  • Combined Advisory/ Discretionary Service Terms
    Davy Private Clients Combined Advisory/ Discretionary Service Terms OCTOBER 2015 Please note that these Advisory/Discretionary Service Terms include and incorporate the Terms & Conditions, the Appendices, the Risk Disclosure Statement, the Order Execution Policy, the Schedule of Fees & Charges, the Conflicts of Interest Policy, the Client Asset Key Information Document, the Investor Profile and the Investor Policy Statement (together, the ‘Terms’). It is important that you read these Terms carefully as they set out the basis on which Davy will act and our aims in acting for you. These Terms apply to our relationship and services generally; where additional and specific terms apply to a particular investment you should consider these carefully before proceeding. Where there is any inconsistency between these Terms and such specific terms and conditions relating to a particular investment, the provisions of those specific terms and conditions will apply. 2 Content Section Page Terms & Conditions 4 Risk Disclosure Statement 52 Information about Davy’s Order Execution Policy 62 Information about Davy’s Conflicts of Interest Policy 66 Client Asset Key Information Document 69 Advisory and Discretionary Fees & Charges Schedule 75 Davy Credit Union Advisory Fees & Charges Schedule 80 3 Terms & Conditions DEFINITIONS In these Terms: Advisory Service means the service whereby with any of the services referred to in these Terms. Davy provides investment advice to its clients in Davy Related Party means each of Davy’s accordance with Part A of these Terms. shareholders, subsidiaries, affiliated entities or any Advisory Account Opening Pack means the pack person, firm or body corporate under its control or of information and application forms provided to under common control or their respective directors, you by us in relation to the Advisory Service.
    [Show full text]
  • UK Terms and Conditions of Business DECEMBER 2015 Welcome to Davy
    Davy Private Clients UK Terms and Conditions of Business DECEMBER 2015 Welcome to Davy Thank you for choosing Davy. We look forward to working with you to achieve your objectives. These terms and conditions of business (‘Terms’) apply to all Services, Advisory Stockbroking, Wealth Management, Financial Planning, Transactional Financial Planning and other ancillary services which we provide to you. These Terms should be read in conjunction with the relevant Service & Fees Schedule and Schedule of Trading Charges (where applicable), which together constitute the entire agreement between us pursuant to clause 6.14, ‘Entire Agreement’. The entire agreement takes effect on the date of signature and shall remain in force until changed in accordance with clause 6.13, ‘Changes’ or until terminated in accordance with clause 6.16, ‘Ending this relationship’. It is important that you read these Terms carefully as they set out the basis on which Davy will act and our aims in acting for you. You and we are bound by these Terms; they apply to our relationship and services generally. Certain products and services will have their own additional and specific terms and conditions. These Terms should be read in conjunction with any other product/ service documentation provided to you. Where additional and specific terms apply to a particular investment or product, and there is any inconsistency between these Terms and such specific terms and conditions relating to a particular investment or product, the provisions of those specific terms and conditions will apply. This does not affect the application of clause 6.23, ‘Limitation of liability’, which will always apply.
    [Show full text]
  • Causes of the Systemic Banking Crisis in Ireland
    MISJUDGING RISK: CAUSES OF THE SYSTEMIC BANKING CRISIS IN IRELAND REPORT OF THE COMMISSION OF INVESTIGATION INTO THE BANKING SECTOR IN IRELAND MARCH 2011 TABLE OF CONTENTS EXECUTIVE SUMMARY I Introduction i Preconditions for the Crisis i Contagion ii Consensus iii Flawed lending: Anglo and INBS iv The Herd: Other Banks v The Silent Observers: External Auditors vi The Enablers: Public Authorities vii Policy with Insufficient Information: the Guarantee ix Some Lessons ix ABBREVIATIONS XI CHAPTER 1- MANDATE, METHOD AND BACKGROUND 1 1.1 Mandate 1 1.2 Previous Scoping Studies 1 1.3 International Developments 2 1.4 Main Issue of this Report 5 1.5 Assigning Blame 6 1.6 Herding and Groupthink in Financial Markets 7 1.7 Method of Work 10 CHAPTER 2 - THE PROBLEMS WITH THE BANKS 12 2.1 Introduction 12 2.2 Setting the Scene 12 2.3 Market Shares Threatened 20 2.4 Business Models and Strategies 22 2.5 Governance and Procedures 26 2.6 Remuneration 29 2.7 Lending and Credit 31 2.8 Funding, Liquidity and Capital 38 2.9 Risk Management 44 2.10 Internal Audit 47 2.11 Behavioural Factors 48 2.12 To Sum Up - the Mechanism of Contagion 49 CHAPTER 3 - EXTERNAL AUDITORS 51 3.1 The Issue 51 3.2 Background 51 3.3 The Statutory Audit and Going Concern 53 3.4 Auditing Irish Banks 53 3.5 Audit Limitations and an “Expectations Gap” 54 3.6 Other Communication by Bank Auditors 55 3.7 General Auditor Concerns in early 2008 56 3.8 Auditor Bank-Specific Communication with Authorities 57 3.9 Auditor Communication with their Clients –The Covered Banks 58 CHAPTER 4 - THE
    [Show full text]
  • Annual Financial Report 2012
    Annual Financial Report 2012 Allied Irish Banks, p.l.c Contents Page Business review Chairman’s statement 4 Chief Executive Officer’s review 6 Corporate Social Responsibility 9 Financial review 11 Risk Management Risk factors 58 Framework 65 Individual risk types 68 Governance and oversight The Board & Executive Officers 168 Report of the Directors 171 Corporate Governance statement 173 Supervision & Regulation 185 Financial statements Accounting policies 193 Consolidated financial statements 218 Notes to the consolidated financial statements 225 Parent company financial statements 342 Notes to the parent company financial statements 347 Statement of Directors’ responsibilities in relation to the Accounts 381 Independent Auditor’s Report 382 General information Additional information 384 Glossary of terms 406 Principal addresses 410 Index 411 1 Forward-looking information This document contains certain forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934, with respect to the financial condition, results of operations and business of the Group and certain of the plans and objectives of the Group. In particular, among other statements in this Annual Financial Report, with regard to management objectives, trends in results of operations, margins, risk management, competition and the impact of changes in International Financial Reporting Standards are forward-looking in nature. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as ‘aim’, ‘anticipate’, ‘target’, ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’, ‘may’, ‘could’, ‘will’, ‘seek’, ‘continue’, ‘should’, ‘assume’, or other words of similar meaning.
    [Show full text]