Banking

Analysis: What will Bankinter move mean for bank passporting in the EU?

EU bank passporting offers efficiency, but the scale of the market and political realities will give European banks pause before jumping into Irish market

While passporting offers efficiency, variations across markets have proven to be an obstacle to it becoming a trend – in spite of EU and ECB wishes. Picture: Bloomberg

With the level of competition in the Irish banking sector reaching a new low in recent years with the departure of Ulster Bank and KBC, the arrival of Spain’s Bankinter, almost 20 years after the last entrant to the market was welcomed in business circles and beyond.

After five years providing mortgages as Avant Money via passporting – this is a process which allows a firm with a banking license in one EU country to operate in another – Bankinter said last week it will now seek a full Irish banking license.