An affiliate of Banking & Payments Federation Ireland (BPFI), the federation’s 31 international banking members include many of the largest financial service providers in the world with Ireland acting as a gateway to Europe and beyond for their operations.
FIBI plays a crucial in representing the views of its members to wide range of external stakeholders such as government departments, regulatory authorities and legislators as well as representative and interest groups. At a European level, with offices in Brussels and membership of the European Banking Federation (EBF) as well as the International Banking Federation (IBFed), FIBI provides a very strong platform of valuable information, insights and networking opportunities for its members. It also provides updates and advocacy on legislative and regulatory matters by the EU and international policy makers and standards setters.
The Irish government recognized the importance of international financial services when it established the International Financial Service Centre (IFSC) in Dublin in 1987. Over the past 35 years the sector has demonstrated its ability to continue to develop and evolve in line with changes in the regulatory environment, economic cycles and industry trends. As the Government continues to prioritize the sustained success of the international financial services sector it works in partnership with industry, academia and key other stakeholders to support the sector’s ongoing growth. FIBI, on behalf of its members, inputs into these discussions ensuring the high-level strategy is aligned with industry needs.
Following Brexit, Ireland has seen an increase in the level of international banking being relocated here to service the EU. The balance sheets of large systemically important banks (those supervised directly by the ECB) with international operations managed and run from Ireland have grown by as much as €200bn since the UK’s exit referendum in June 2016. These transfers put Ireland in second place behind Germany when it comes to the value of assets that were moved from the UK to EU banks after Brexit. The shift in funds and expansion of operations mean Ireland had the eighth largest international banking sector in the EU by the end of 2020.
The Federation of International Banks in Ireland (FIBI) is the principal voice of the international banking and financial services sector in Ireland.
International banks located in Ireland cover the complete spectrum of financial services including capital markets and investment banking, prime brokerage and securities lending, risk management, operations and technology centers, research and development hubs, lending facilities, treasury operations and intra-group financing activities.
Many UK and global banking groups have built-up or established new Irish entities to service EU clients post-Brexit. This has seen an influx of new staff, assets, risk management capabilities and investment services activities in Ireland. In addition, EU branch networks have also been revised and has resulted in the transfer of EU branches of UK entities to new EU entities in Ireland
International banking operations in Ireland act as a key bridge to servicing the EU market, directly and through its vast EU branch networks. Like other EU markets, the Irish sector is a key beneficiary and enabler of an EU Banking Union and Capital Markets Union.
More recently international banks are starting to leverage off the success of their Irish based operations where they have now developed a positive track record of delivering projects and access to good pools of talent available which can fund new growth.
Looking to the future the single greatest global challenge is climate change and sustainable finance will play a significant role in financing the transition to a low carbon economy. Ireland’s international based banks believe there is a global leadership opportunity for them in sustainable finance with 56% of FIBI members seeing an opportunity for their operations in Ireland to take a global leadership role in this vital area. Our banks are well positioned to help businesses and customers transition to a low carbon economy and ensure that Ireland meets it climate targets. This transition offers great opportunities for the sector, which FIBI members are keen to develop. Our collective ambition is to make Ireland a key hub for sustainable finance over the coming decade, while supporting both our international and Irish clients.