Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
THE COMPETITION AND consumer watchdog (CCPC) has cleared the sale of KBC Bank Ireland’s €9 billion loan portfolio to Bank of Ireland subject to a number of conditions to ensure that competition in the mortgage market is maintained.
The sale would see Bank of Ireland acquire KBC’s performing loan assets, including performing mortgages, and commercial and consumer loans, and a small number of non-performing mortgages.
The watchdog launched a full investigation into the proposed purchase in October 2021 after an extended preliminary investigation had concluded.
The CCPC said its full investigation identified “significant competition concerns” arising from KBC’s exit from the mortgage market in Ireland.
It said a key issue it identified is the strength of competition that non-bank lenders will provide in the medium term, given expectations of a rising interest rate environment.
“In light of these concerns, the CCPC considered it important that non-bank lenders operating in the Irish mortgage market be supported in their continued growth and role as emerging competitors in the sector,” the CCPC said in a statement.
In response to the concerns, Bank of Ireland has committed to making €1 billion in total funding available to certain non-bank lenders through the purchasing of securities issued by them, to increase their funding capacity and reduce their cost of funding.
The bank has also committed to making €1 million in funding available for distribution to companies involved in developing innovations relevant to the market for the provision of mortgages in the State.
To address the effects of the transaction on KBC mortgage customers, Bank of Ireland will honour the fixed rate included in the existing terms and conditions of KBC fixed rate mortgages for the remainder of the fixed term.
It will also honour the 0.2% discount in mortgage rate of every KBC customer eligible for that discount at the date of mortgage transfer to Bank of Ireland for as long as their transferred mortgage is held with the bank and without being required to hold a Bank of Ireland current account.
The bank has also committed to offering the variable rate equivalent to that of KBC migrated variable rate customers, as well as Bank of Ireland fixed rate options, to fixed rate KBC mortgage customers on their first roll-over post-migration.
“Following detailed consideration and further analysis and having taken into account the above commitments given by Bank of Ireland, the CCPC has determined that the proposed acquisition will not substantially lessen competition and, therefore, the proposed acquisition can be put into effect,” the CCPC statement continued.
Francesca McDonagh, Group Chief Executive of Bank of Ireland, has welcomed the announcement, deeming it an “important step towards the completion of this acquisition”.
“Bank of Ireland has been part of Ireland’s commercial, economic, and social fabric for almost 240 years, and we look forward to providing an excellent long-term home for KBC Bank Ireland customers,” she said.
We are committed to delivering a smooth and seamless migration for KBC customers, ensuring strong customer protections and financial stability within the Irish banking sector and broader economy.
In a statement, KBC Bank Ireland said that customers do not need to take any immediate action as a result of the announcement as the agreement remains subject to ministerial approval.
The bank said that all customers will shortly receive a booklet “which will clearly outline what is happening to all KBC products”.
“Following a full approval of this agreement, customers will then receive individual communications on each of their products providing them with notice of future changes and outlining what actions or steps (if any) they need to take,” the statement continued.
KBC said it will ensure customers are provided with plenty of notice of any impact and/or changes to their account in line with all legal and regulatory protections.
To embed this post, copy the code below on your site
Is this the same Flanagan who’s lobbying the Egyptian authorities on behalf of Muslim Brotherhood extremists?
That would be the same guy alright! Pandering to extremists! The very people who want to change our laws to Sharia use them against us. Don’t get so tolerant that you tolerate intolerance.
The Irish citizen indefinitely interned without due process by a military dictatorship?
No it’s the same Charlie Flanagan who refused to expel the Israeli ambassador for murdering hundreds of children recently.
Do you mean the person who entered Egypt on an Egyptian passport ?
Still an Irish citizen, whether you believe with his opinions or not.
if we didn’t allow terrorists to refuel in shannon the threat would be nil
They weren’t terrorists, they were the Americans. Letting the Americans refuel there is why we might be a target. Try and keep up.
I should keep up? ))) keep reading it, the penny has to drop eventually )))))) Numpty
Now, now my child. Just because I corrected you, there is no need to resort to name calling. I was only doing it to clear up your confusion.
Terror threat to Ireland is low ! , well if the number of Muslims continue to grow that “low ” might change
Only 2% of EU terror attacks since 2010 were Islamic, ther dont report lone wolfs, seperatisis and nationalist attacks cos theyre not as sexy.
Same in the US their biggest threat remains right wing extremists
That statistic is completely misleading
140, 000 murders in the USA since 9/11 fewer than 100 with any fundamentalist connection. Sharia law? The mind boggles. Who/what system benefits from keeping people churned up about this while they steal kids’ patrimonies?
There is a cowardice that responds to this in the West.
It might be an idea to look around the Parnell Square area.
Or Dame Street, Solny?
Tap, that’s where I live.
Thanks for the heads up Comrade Shinnerbot.
Keep your eyes peeled Prov, rumour has it that there are some suspicious characters hanging around that area.
All I see are freedom fighting patriots, but don’t worry, if I see any terrorists I’ll be quick to deflect.
the south circular road, post office on leopards corner on dole day etc etc, w.union shoo hooo.
“policy of integration” haven’t ye tried that already? best of luck with trying what’s not possible. Don’t let them return here, home? this is not their home.
Meanwhile in Australia… https://au.news.yahoo.com/nsw/a/26035713/call-for-muslim-army-in-australia/
It’s well known by the man on the street that jihadists are hiding out in Ireland. What’s not well known is the Americans and Britain is watching very carefully and they will take action if necessary.
Not to mention G2 and Garda Special Branch who have a long track record of nearly unbroken success w terrorism si
The article mentions integration, something that will never ever happen. Multiculturism does not work and there is zero evidence that it does. On a side note has any other Irish person given any type of vote on mass immigration or integration or is this forced integration? by the way the U.N convention on human rights states that forced integration is genocide, under article 2 i think.
no we were not given vote cos they’d know the outcome, so forced it, and the UK now says they should have put it to the people.
the cartoons should be published here in solidarity with freedom of speech. if they think theres no threat here, then theres one way to find out, or would they be not so sure? they’re not sure, they’re here too and lots and lots of sympathisers hiding behind face.
Be alert, your country needs lerts
I can’t believe the comments painting all Muslims with the same brush. Just as the KKK does not represent all Christians, fundamental terrorists such as those in France do no represent all Muslims.
Why is it low???
Because we have such a small Muslim population.
Ireland on high alert. Keep that one eye open paudge
have your say