Q&A

What’s going to happen to deposits in Anglo Irish Bank and Irish Nationwide?

The bulk of the deposits held in the two banks will be auctioned to one or more other financial institutions. The transfer of the deposits was a requirement under the Government’s agreement with the European Commission, the International Monetary Fund and the European Central Bank.

The so-called “troika” have pressed for the transfer of the deposits to be conducted as quickly as possible to facilitate the merger and eventual wind-down of Anglo and Irish Nationwide.

When will the auction take place?

The Department of Finance says the process of auctioning the deposits will be “completed in the coming weeks” and that the identity of the institution or institutions to which the deposits will be transferred will be made known as soon as the process is completed.

The auction, which will be conducted by the National Treasury Management Agency (NTMA), is likely to attract interest from other Irish financial institutions.

What do depositors of the two institutions have to do ne xt?

Very little, except sit back and wait for further information from the banks.

Anglo, Irish Nationwide and the NTMA yesterday said deposits would be transferred “in a seamless manner” and that “no further action will be required by depositors”.

Will the deposits still be protected by the Government guarantee?

The deposits will be protected both during and after the transfer by the deposit protection schemes and by the Government’s Eligible Liabilities Guarantee (ELG) scheme, which came into effect last September as part of an extension to the September 2008 blanket guarantee.

What will happen to the terms and rates that apply to the deposits?

The conditions attached to deposits in Anglo and Irish Nationwide, including the maturity and interest rate, will be unaffected by their move to a new financial institution.

Individual queries on savings and deposits should be addressed to Anglo and Irish Nationwide, the Department of Finance added.

Can holders of deposits at Anglo and/or Irish Nationwide still withdraw money from their local branch or call centre?

The branches and call centres of both institutions “will continue to operate as normal”, meaning customers can continue to access their funds through these routes.

Both institutions will update their deposit customers about the outcome of the auction, setting out the transitional arrangements that will apply following the transfer of the deposits.

Does yesterday’s court action have consequences for mortgage customers of Irish Nationwide?

The court order does not cover Irish Nationwide’s mortgages, so anyone with a home loan with the building society is not affected.