Can the IFSC really ease the pain of domestic banks' job cuts?

It's a line that's been toed before and one that's resurfaced again; job creation in the IFSC could help to offset the impending redundancies in the domestic banking sector. Perhaps this is wishful thinking.

Speaking at yesterday's Federation of International Banks in Ireland conference, IFSC Ireland president John Bruton suggested that international firms could offer redeployment opportunities as domestic banks downsized.

This is no easy task. For a start there's the scale of the job losses - currently pegged at 6,000 across the Irish banks. While employment in the IFSC stands at over 32,700, only "several hundred" additional jobs are likely to be created in 2011, according to IFSC Ireland.

Then, there's the types of jobs being created, most of which are outside the banking sector.

"We're currently seeing some junior to mid level roles for corporate credit analysts and loan administrators, as well as risk and compliance positions," says Paul O'Reilly, senior consultant - banking & financial services at Robert Walters. "But banking recruitment still isn't completely buoyant in the IFSC."

Instead, the bulk of job creation is within the fund administration sector and here it is very buoyant. Recruitment sources have suggested that the larger fund admin houses are set to create a combined 1,000 additional jobs this year.

"It's feasible that those employees that have undertaken some more quantitative roles within retail banks - where the majority of job losses are expected - could move across to a fund administration position," argues Alan Bluett, director at recruiters the IFSC Panel.