Why I won’t be investing in banks

Michael Murray lists here his top ten reasons why he believes the sector is a no-go area

Michael Murray: Never do I recall a sector facing so many challenges all at once Picture: Maura Hickey

You might be tempted. Fat dividend yields from HSBC (over 6 per cent), from Lloyds TSB (over 4 per cent), from Banco Santander (over 5 per cent) and the possible, but not certain, prospect of Bank of Ireland restoring its dividend in the next year or two.

But before you dive into these or other banks, consider the banking industry’s dynamics and future prospects in terms of the transformed regulatory regime, the interest ...