Bank of Ireland

Bank of Ireland is the oldest bank in continuous operation in Ireland.

In 1781, the Bank of Ireland Act was passed by the Parliament of Ireland, establishing Bank of Ireland. On 25 June 1783, Bank of Ireland opened for business at Mary's Abbey in a private house previously owned by one Charles Blakeney.On 6 June 1808, Bank of Ireland moved to 2 College Green. In 1864, Bank of Ireland paid its first interest on deposits.In 1926, Bank of Ireland took control of the National Land Bank. In 1948, The Bank of Ireland 1783–1946 by F.G. Hall was published jointly by Hodges Figgis and Blackwell's .In 1958, the Bank took over the Hibernian Bank Limited. In 1965, The National Bank Ltd, a bank founded by Daniel O'Connell in 1835, had branches in Ireland and Britain. The Irish branches were acquired by Bank of Ireland and rebranded temporarily as National Bank of Ireland, before being fully incorporated into Bank of Ireland. The British branches were acquired by Williams & Glyn's Bank.In 1980, the first Pass card and machine, also known as an ATM, was opened by Bank of Ireland. In 1983, Bank of Ireland celebrated its Bi-Centenary and a commemorative stamp was issued. The Bank also commissioned the publication of "An Irish Florilegium" that year. In 1995, Bank of Ireland merged First New Hampshire Bank with Royal Bank of Scotland's Citizens Financial Group. Only branches in cities and major towns had ATMs in the 1980s but branches in most medium and small towns installed then in the 1990s.

In 1996, Bank of Ireland bought the Bristol and West building society for UK£600 million , which kept its own brand. In 1999, the bank held merger talks with Alliance & Leicester, but they were called off. In 2000, it was announced that Bank of Ireland was acquiring Chase de Vere.In 2002, Bank of Ireland acquired Iridian, a US investment manager, which doubled the size of its asset management business. In 2005, Bank of Ireland completed the sale of the Bristol and West branch and Direct Savings to Britannia Building Society.In 2008, Moody's Investors Service changed its rating of Bank of Ireland from stable to negative. Moody's pinpointed concerns over weakening asset quality and the impact of a more challenging economic environment on profitability at Bank of Ireland. A share price collapse followed. In 2009, The Irish government announced a €7 billion rescue package for the bank and Allied Irish Banks plc in February. The biggest bank robbery in the history of the state took place at Bank of Ireland at College Green. Consultants Oliver Wyman validated Bank of Ireland's bad debt levels at €6 billion over three years to March 2011, a bad debt level which was exceeded by almost €1 billion within a matter of months.In 2010, The European Commission ordered the disposal of Bank of Ireland Asset Management, New Ireland Assurance, ICS Building Society, its US Foreign Exchange business and the stakes held in the Irish Credit Bureau and in an American Asset Manager followed the receipt of Irish Government State aid. In 2011, the Securities Services Division of the bank was sold to Northern Trust Corporation.In 2013, Bank of Ireland more than doubled interest rates on mortgages tracking Bank of England rates, , citing the need to hold more reserves and the 'increased cost of funding mortgages'. Described by Ray Boulger of broker John Charcol as 'having shot the reputation of its mortgages to smithereens', nevertheless, the bank continues to offer highly competitive mortgages through the Post Office.In 2014, regulation of the bank was transferred to the European Central Bank. Also in 2014, the bank entered into a marketing alliance with EVO Payments International and re-entered the card acquiring market. BOI Payment Acceptance was launched in December 2014.

Role as government banker

Bank of Ireland is not, and was never, the Irish central bank. However, as well as being a commercial bank – a deposit-taker and a credit institution – it performed many central bank functions, much like the earlier-established Bank of Scotland and Bank of England. Bank of Ireland operated the Exchequer Account and during the nineteenth century acted as something of a banker of last resort. Even the titles of the chairman of the board of directors and the title of the board itself suggest a central bank status. From the foundation of the Irish Free State in 1922 until 31 December 1971, Bank of Ireland was the banker of the Irish Government.

Headquarters

The headquarters of the bank until the 1970s was the impressive Parliament House on College Green, Dublin. This building was originally designed by Sir Edward Lovett Pearce in 1729 to host the Irish Parliament, and it was the world's first purpose-built bicameral parliament building.The bank had planned to commission a building designed by Sir John Soane to be constructed on the site bounded by Westmoreland Street, Fleet Street, College Street and D'Olier Street . However, the project was cancelled following the Act of Union in 1800, when the newly defunct Parliament House was bought by Bank of Ireland in 1803. The former Parliament House continues today as a working branch. Today, visitors can still view the impressive Irish House of Lords chamber within the old headquarters building. The Oireachtas, the modern parliament of Ireland, is now housed in Leinster House in Dublin. In 2011, the Irish Government set out proposals to acquire the building as a venue for the state to use as a cultural venue.

In the 1970s the bank moved its headquarters to a modern building, now known as Miesian Plaza, on Lower Baggot Street, Dublin 2. As Frank McDonald notes in his book Destruction of Dublin, when these headquarters were built, it caused the world price of copper to rise – such was the usage in the building.

In 2010 the bank moved to its current, smaller headquarters on Mespil Road.