Your assignment is to prepare and submit a paper on the banking of ireland. The Irish economy has experienced tremendous growth for the past 15 years. This has created an opportunity for the banking industry to offer improved services and products to the market. The motor finance service is a product by the bank that lends money to their clients to pay for their motor vehicles. This product offers the client the advantage of acquiring the vehicle without liquid cash. They are thus able to repay the loan in installments at an interest. The innovation of such services has to lead to the development and growth of the banking industry in Ireland. The banking industry has undergone tremendous growth with the globalization of the market. The formation of the European Union market for the banking sector has increased competition in the market. Furthermore, other lending firms in Ireland have come up increasing the competition facing the bank of Ireland. The increased competition is accompanied by a change in consumer needs. This has prompted the banks to offer other services in order to retain their market position (Best, 2012). However, this industry has been facing various challenges facing some of the banks to close down. The recent Irish banking crisis has significantly affected the functioning of the banks. BIF has reported an increase in the number of deposits as well as revenue from lending following the introduction of the motor car financing. The ability of the institution to form contracts with different motor vehicle franchise is also a strength for BIF. This is because it is able to offer the clients diversity in terms of the type of motor vehicle. Currently, the motor vehicle loaning service offered by BIF is not regulated by the government. This offers the bank flexibility in satisfying the client. It also helps reduce the limitations and expenses attributed to the implementation of government policies. One of BIF’s weaknesses is its inability to ascertain risk. The bank failed to foresee the challenges that the economic financial crises which led to the collapse of the housing and related investment market (Valentin, 2001). During the Irish economic crisis, BIF was unable to forecast the aftermath of the crisis leading to a massive loss. Although the motor finance product offers a flexibility advantage, lack of central bank control may also be a point of weakness for the bank. A further reduction in the company’s stock price market has greatly influenced the current financial position of the institution.
Don't use plagiarized sources. Get Your Custom Essay on
Your assignment is to prepare and submit a paper on the banking of ireland. The Irish economy has experienced tremendous growth for the past 15 years. This has created an opportunity for the banking i