Bank crisis kills prospect of rivals challenging AIB and Bank of Ireland, experts warn

The big two Irish lenders also profited from acquiring billions of euro in deposits and performing loan books following the exits of Ulster Bank and KBC Bank last year

In Ireland, bank shares of the dominant lenders AIB and Bank of Ireland, which had fallen sharply along with European peers last week, rebounded on Monday following the buyout of Credit Suisse. Picture: Artur Widak/Reuters

Global banking turmoil has killed off the prospect of rival lenders entering Irish banking any time soon, and will likely strengthen an effective duopoly here at the expense of households and businesses, experts have warned. 

European banks continued to be under scrutiny following the €3bn weekend shotgun rescue of Credit Suisse, one of Europe's largest lenders, by fellow Swiss giant UBS. The banking crisis erupted a week ago with the collapse in the US of Silicon Valley Bank, and the closure or emergency funding required by other US lenders, as depositors fled stricken banks.