Spain’s Bankinter takes on Irish banks with deposit move

MADRID, April 26 (Reuters) – Bankinter (BKT.MC), opens new tab said on Friday it was applying for a full Irish banking licence and entering the deposit market as part of the Spanish bank’s strategy to diversify under CEO Gloria Ortiz.

The move by Spain’s fifth-largest bank by market value is seen as a significant boost for competition in Ireland, where retail banking is dominated by three Irish lenders – AIB (AIBG.I), opens new tab, Bank of Ireland (BIRG.I), opens new tab and Permanent TSB (PTSB.I), opens new tab.

Bankinter said it would operate in Ireland under its own brand to offer all kinds of financial products to customers.

Ireland’s financial crisis led to the withdrawal of Bank of Scotland (Ireland) and Danske Ireland from the market, while the last two international banks, Ulster Bank and KBC Bank Ireland, decided three years ago to wind down their operations.

Irish Finance Minister Michael McGrath said in a statement he welcomed Bankinter’s intention to seek regulatory approval for a full banking licence.

Source: REUTER