Bank of Ireland cleared to acquire €9bn worth of loans from KBC Bank Ireland.
In another step towards KBC’s exit of the Irish market, Bank of Ireland has been cleared to acquire €9bn worth of loans from KBC by the Competition Authority, subject to certain conditions being met.
These include making €1bn of funding available to non-bank lenders in the Irish mortgage market through the purchasing of securities as well as providing €1m of funding to companies developing innovations relevant to the mortgage market.
“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”
Subject to final approval of the transaction, KBC Bank Ireland customers with mortgages or loans that are part of the transaction will migrate to Bank of Ireland on the rate of their product at the time of migration.
KBC Bank Ireland customers who benefit from a mortgage or loan rate discount linked to the holding of a KBC current account will retain that discount for the duration of the mortgage or loan.
In addition, on their first roll over post migration, KBC fixed rate mortgage customers will be offered the variable rate equivalent to that of KBC migrated variable rate customers, as well as BOI fixed rate options.
“I welcome today’s announcement which is an important step towards the completion of this acquisition,” said Bank of Ireland CEO Francesa McDonagh.
“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.
“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.”