 | |
| Type | Bank |
|---|---|
| Industry | Financial services |
| Founded | 1935 |
| Founder | |
| Headquarters | 10 Molesworth Street, Dublin 2, D02 R126, Ireland |
Key people | Peter Hagan (Chairman) Paul Butler (Managing Director) [1] |
| Products | Mortgage, Savings, Personal Loans Current Accounts, Credit Card facility |
Number of employees | 300 (2018) |
| Website | ebs.ie |
EBS d.a.c. is a small financial institution in Ireland registered as a designated activity company.
 | This section needs additional citations for verification .(June 2022) |
EBS Building Society was founded in 1935 by Alexander McCabe, Thomas J. O'Connell and other teachers to provide affordable housing finance for teachers and other civil servants. [2] [3]
EBS was one of the last two Irish building societies owned by their members but since July 2011, has been a subsidiary of AIB Bank. With 70 branches throughout Ireland, EBS offers residential, personal loans, savings accounts and investment products.
It formerly did not offer current accounts using its own resources and instead through an agreement with Allied Irish Banks, an ATM card service was operated using AIB's Banklink system. This has now been withdrawn and a debit card is provided in conjunction with MasterCard. Similarly, credit cards were formerly offered in conjunction with MBNA.
In 2003, the EBS building society promoted a controversial product which involved parents remortgaging the family home to help their children buy a property. Called FamilyFirst, the product was aimed at first-time buyers and enabled parents to help raise the deposit on a starter home by taking out a loan with no repayments due for three years. After this period the parent takes on the repayments or the child can decide to pay off the parents' loan. The product drew extensive criticism when EBS promoted it in adverts in 2003. Critics charged that the product was a form of emotional blackmail and that parents were being forced into debt to fund their children's lifestyle. [4]
In 2006, EBS became a tied insurance agent of Irish Life, PLC for the provision of life and investments products. All investment products sold through EBS are managed by Irish Life Investment Managers.
During 2007, a wholly owned subsidiary, Haven Mortgages, was established. Haven was intended to focus exclusively on the broker market as a separate lender in its own right.
On 18 September 2009, Fergus Murphy, the chief executive of Educational Building Society (EBS) admitted his financial institution had played a key role in helping to create an overheated economy. Eithne Tinney, a former EBS director has described a “feeding frenzy” which existed between lenders and developers in the lead-up to the crash and the bonus system in banks as “crazy”. She said “The bonus system in banks is crazy. You get a bonus for lending money out. There is no incentive for getting it back in. Such a system encourages greed and recklessness.” Ms Tinney was a member of the board of EBS from 2000 until 2007. She told the banking inquiry how she was “removed” from the board as she was considered a “troublemaker”.
On 1 July 2011, EBS Building Society ceased to exist and, after being granted a banking licence, and demutualising, EBS Building Society became EBS Ltd., a subsidiary of AIB.
On 12 September 2016, EBS Limited re-registered as a designated activity company (d.a.c.), as required under the Companies Act 2014. The registered name of the legal entity is now EBS d.a.c.
In June 2010, the European Commission authorised the Irish government to inject €875 million as emergency rescue aid into the society to combat the post-2008 Irish banking crisis. This bailout money came with the demand that the EBS must submit a restructuring plan to the commission. [5] The European Commissioner for Competition, Joaquín Almunia, said "EBS needs a significant recapitalisation to comply—and to continue to comply in the coming years—with capital requirement rules."
By March 2011 the total external bailout needed to save the institution was estimated at €1.5 billion. [6]
The former head of EBS Building Society Fergus Murphy told the Oireachtas Banking Inquiry in 2015 there was a “very reasonable chance” the institution could have made it through the crash without being nationalised and merged with AIB if it had not got involved in land development and commercial property lending. “They got into it because they felt they were losing relevance” and “needed to create new profit pools”, Mr Murphy told the committee. EBS became involved in commercial property lending in 2001/02 and in land and development loans in 2005. The combined loan book amounted to €1.7 billion by the end of 2007. Mr Murphy took over as chief executive of EBS in January 2008 and ceased its lending to commercial property and land development projects.
On 18 June 2018, EBS admitted that a further 500 customers were caught up in its tracker mortgage scandal, which brought the number of its customers affected to 2,400.
In November 2020 a financial advisor who was an employee of EBS and who stole a total €271,000 from elderly and vulnerable people was jailed for eleven months at Sligo Circuit Court. The court heard she had "not paid back a penny". Her victims said she had abused her position as a financial adviser and a "trusted employee."
In June 2022, the Central Bank of Ireland reprimanded and fined EBS d.a.c. trading as EBS €13.4m for a series of significant and long-running failings in the treatment of its mortgage customers, between August 2004 and June 2020. As a result of this investigation alone, EBS has admitted to 36 separate regulatory breaches. This fine was separate from the more than the €105m that EBS has been required to pay to date in redress, compensation and account balance adjustments to impacted customers.
In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations, etc. The recipient incurs a debt and is usually liable to pay interest on that debt until it is repaid, as well as to repay the principal amount borrowed.
The Bank of America Corporation is an American multinational investment bank and financial services holding company headquartered at the Bank of America Corporate Center in Charlotte, North Carolina, with investment banking and auxiliary headquarters in Manhattan. The bank was founded in San Francisco, California. It is the second-largest banking institution in the United States, after JPMorgan Chase, and the second-largest bank in the world by market capitalization. Bank of America is one of the Big Four banking institutions of the United States. It serves approximately 10.73% of all American bank deposits, in direct competition with JPMorgan Chase, Citigroup, and Wells Fargo. Its primary financial services revolve around commercial banking, wealth management, and investment banking.
Nationwide Building Society is a British mutual financial institution, the seventh largest cooperative financial institution and the largest building society in the world with over 16 million members. Its headquarters are in Swindon, England.
Permanent TSB Group Holdings plc, formerly Irish Life and Permanent plc is a provider of personal financial services in Ireland. Irish Life Assurance plc and the Irish Permanent Building Society merged to form the Irish Life and Permanent Group in 1999 and the merged entity acquired the Trustee Savings Bank in 2001. The group has no connection to the UK's TSB Bank.
ACC Loan Management Limited, formerly ACCBank plc, was originally a commercial bank in Ireland that focused on agriculture and SME lending, and later became a company that focussed on managing the lending facilities of its existing clients. The bank had its origins in the Agricultural Credit Corporation set up in 1927 in the Irish Free State to finance agriculture; the bank was successful and led to the creation of the Industrial Credit Company, which was modelled on it and provided finance to industry. In the early 1990s, the company name was changed from "Agricultural Credit Corporation plc" to "ACCBank plc" in order to signify that the company was then targeting more than simply agricultural customers. In early 2002, the bank was sold by the Irish Government to Rabobank, it was one of the three entities of the Rabobank (Ireland).
Allied Irish Banks, p.l.c. is one of the so-called Big Four commercial banks in the Republic of Ireland. AIB offers a full range of personal, business and corporate banking services. The bank also offers a range of general insurance products such as home, travel and car. It offers life assurance and pensions through its tied agency with Irish Life Assurance plc.
A home equity line of credit, or HELOC, is a revolving type of secured loan in which the lender agrees to lend a maximum amount within an agreed period, where the collateral is the borrower's property. Because a home often is a consumer's most valuable asset, many homeowners use their HELOC for major purchases or projects, such as home improvements, education, property investment or medical bills, and choose not to use them for day-to-day expenses.
A mortgage broker acts as an intermediary who brokers mortgage loans on behalf of individuals or businesses.
Second mortgages, commonly referred to as junior liens, are loans secured by a property in addition to the primary mortgage. Depending on the time at which the second mortgage is originated, the loan can be structured as either a standalone second mortgage or piggyback second mortgage. Whilst a standalone second mortgage is opened subsequent to the primary loan, those with a piggyback loan structure are originated simultaneously with the primary mortgage. With regard to the method in which funds are withdrawn, second mortgages can be arranged as home equity loans or home equity lines of credit. Home equity loans are granted for the full amount at the time of loan origination in contrast to home equity lines of credit which permit the homeowner access to a predetermined amount which is repaid during the repayment period.
In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan. The collateral serves as a lender's protection against a borrower's default and so can be used to offset the loan if the borrower fails to pay the principal and interest satisfactorily under the terms of the lending agreement.
A shared appreciation mortgage or SAM is a mortgage in which the lender agrees to receive some or all of the repayment in the form of a share of the increase in value of the property.
Ditech Financial LLC was a provider of home loan, loan servicing and refinance products to consumers and institutional partners in the U.S.
Caixa Geral de Depósitos (CGD) is a Portuguese state-owned banking corporation, and the largest bank in Portugal, established in Lisbon in 1876.
HSBC Bank Australia Limited is the Australian subsidiary of HSBC. The bank offers a wide range of financial services in Australia through a network of 36 branches and offices. These services include retail and commercial banking, financial planning, trade finance, treasury and financial markets, payments and cash management and securities custody.
A mortgage loan or simply mortgage, in civil law jurisdicions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any purpose while putting a lien on the property being mortgaged. The loan is "secured" on the borrower's property through a process known as mortgage origination. This means that a legal mechanism is put into place which allows the lender to take possession and sell the secured property to pay off the loan in the event the borrower defaults on the loan or otherwise fails to abide by its terms. The word mortgage is derived from a Law French term used in Britain in the Middle Ages meaning "death pledge" and refers to the pledge ending (dying) when either the obligation is fulfilled or the property is taken through foreclosure. A mortgage can also be described as "a borrower giving consideration in the form of a collateral for a benefit (loan)".
The government interventions during the subprime mortgage crisis were a response to the 2007–2009 subprime mortgage crisis and resulted in a variety of government bailouts that were implemented to stabilize the financial system during late 2007 and early 2008.
The Troubled Asset Relief Program (TARP) is a program of the United States government to purchase toxic assets and equity from financial institutions to strengthen its financial sector that was passed by Congress and signed into law by President George W. Bush. It was a component of the government's measures in 2009 to address the subprime mortgage crisis.
The post-2008 Irish banking crisis was the situation whereby, due to the Great Recession, a number of Irish financial institutions faced almost imminent collapse due to insolvency. In response, the Irish government instigated a €64 billion bank bailout. This then led to a number of unexpected revelations about the business affairs of some banks and business people. Ultimately, added onto the deepening recession in the country, the banks' bailout was the primary reason for the Irish government requiring IMF assistance and a total restructuring of the Irish Government occurred as result of this.
The National Asset Management Agency is a body created by the government of Ireland in late 2009 in response to the Irish financial crisis and the deflation of the Irish property bubble.
The mortgage industry of the United Kingdom has traditionally been dominated by building societies, the first of which opened in Birmingham in 1775. But since the 1970s, the share of new mortgage loans market held by building societies has declined substantially. Between 1977 and 1987, the share fell drastically from 96% to 66%, and that of banks and other institutions rose from 3% to 36%. The major lenders include building societies, banks, specialized mortgage corporations, insurance companies and pension funds. During the four years after the financial crisis of 2008, the UK mutual sector provided approximately 80% of net lending to the housing market. There are currently over 200 significant separate financial organizations supplying mortgage loans to house buyers in Britain, with Lloyds Bank and the Nationwide Building Society having the largest market share.
| Central | |
|---|---|
| The Big Three commercial banks | |
| Other commercial banks & financial institutions | |
| Defunct banks & financial institutions | |
| International | |
|---|---|
| National | |
