Latest news with #FederationofInternationalBanksinIreland
Irish Examiner
13-05-2025
- Business
- Irish Examiner
International banks in Ireland braced for 'headwinds' amid trade tensions
Four out of five international banks operating in Ireland expect to face 'headwinds' from geopolitical tensions and resulting effects on trade. A report published on Tuesday by the Federation of International Banks in Ireland (FIBI) shows that the international banking sector in Ireland is set to grow with over 60% of member firms expected to increase business activity and 39% expected to increase the number of people employed in 2025. However, 79% of banks believe the trade uncertainty brought about by the US administration's tariffs will be a concern over the next five years. The increasing regulatory burden is also regarded as a challenge by 61% of members. 'While the overall outlook remains positive, the industry does face headwinds. In common with businesses in every other sector, Ireland's international banks are likely to be impacted by heightened geopolitical tensions and resulting disruptions to trade," said FIBI chair and country head for Citi Ireland, Davinia Conlan. "The increasing regulatory burden was also seen as a challenge by 61% of members while a further 39% cited the diverging international regulatory landscape. This is to be expected against the backdrop of a growing tide of regulation coming into force both domestically and at EU level, exacerbated by the increased complexity caused by the varying approaches taken to implementing regulations in different jurisdictions.' Ireland hosts operations for more than 30 international banks and ranked eighth largest exporter of financial services in the world. Internationally owned business, financial and other services firms were responsible for direct spending in the Irish economy of €5.5bn, according to the Department of Enterprise, Trade and Employment, including more than €3.9bn in payroll costs alone. Ireland's international banks also make a significant contribution to employment across the country with employment in FIBI member firms up by over 20% on pre-pandemic levels, with almost 14,700 employed at the start of 2025. "As the international financial services industry grows in Ireland, the talent pool is expanding organically, and many companies now have a depth of experience that was not previously available to them. The quality of talent available is also having a positive impact on growth in the sector, which is helping FIBI member firms to expand their business and develop beyond initial plans,' said Ms Conlan. FIBI is an affiliate of the Banking & Payments Federation Ireland (BPFI) represents the banking, payments and fintech sector in Ireland.
RTÉ News
13-05-2025
- Business
- RTÉ News
Geopolitics the top concern for international banks here
Nearly eight in ten international banks in Ireland say global political tensions could hit their business in the next five years. That is according to a new report by the Federation of International Banks in Ireland (FIBI) and Banking and Payments Federation Ireland (BPFI). FIBI represents more than 30 international banking and investment organisations – including many of the world's leading global banks and investment firms such as Bank of America, JP Morgan and Wells Fargo. This latest research was carried out in February, after Donald Trump was elected US President. 79% of firms said geopolitical tensions are a key concern, while 39% cited it as a main challenge. This is a significant jump from last year when less than 40% were concerned, and just 9% said it was their top concern. FIBI members are also concerned about increased regulation here and the diverging regulations internationally. Davinia Conlan, Chair of FIBI and Country Head for Citi Ireland said this is no surprise. "This is to be expected against the backdrop of a growing tide of regulation coming into force both domestically and at EU level, exacerbated by the increased complexity caused by the varying approaches taken to implementing regulations in different jurisdictions," she explained. Despite these challenges, most international banks and investment firms in Ireland continue to grow and are positive about their future outlook. Around 61% of respondents expect the level of business activity in their Irish operations to increase in the year ahead, while the rest believe it will remain unchanged. In terms of overall business sentiment, 25% expect a deterioration and only 32% expect to see some improvement. According to the most recent figures from the Department of Enterprise, Trade and Employment, internationally owned business, financial and other services firms were responsible for direct spending in the Irish economy of €5.5 billion. That included more than €3.9 billion in payroll costs alone, as well as expenditure on Irish-sourced materials and services. Meanwhile, the financial industry's exchequer contribution reached €7.7 billion from financial and insurance activities. "Ireland is recognised as a major European and global hub for international banking and investment firms, hosting operations for more than 30 international banks and ranked eighth largest exporter of financial services in the world," Ms Conlan said. This is down from sixth place in 2023. The US tops the list, followed by the UK and Luxembourg. Today's report reveals that Ireland's international banks make a significant contribution to employment across the country. Employment in FIBI member firms is up by over 20% on pre-pandemic levels from 2019, with almost 14,700 employed at the start of 2025. "As the international financial services industry grows in Ireland, the talent pool is expanding organically, and many companies now have a depth of experience that was not previously available to them," said Ms Conlan. "The quality of talent available is also having a positive impact on growth in the sector, which is helping FIBI member firms to expand their business and develop beyond initial plans," she added. Overall, Ms Conlan said the responses to the survey give confidence that the sector will continue to perform, but she said there is no cause for complacency. "We have seen all too clearly in recent months just how quickly the environment can change," she said. "It is now more important than ever that all stakeholders in this country - industry, Government, and regulators – come together and actively seek to enhance Ireland's position as an attractive location for international banking activities," she added.
