Public statement relating to Settlement Agreement between the Central Bank of Ireland and KBC Bank Ireland Plc

Date06 October 2016
Settlement Agreement between the Central Bank of Ireland
and
KBC Bank Ireland Plc
KBC Bank Ireland Plc fined €1,400,000 by the Central Bank of Ireland for breaches of its Code of
Practice on Lending to Related Parties
The Central Bank of Ireland (the ‘Central Bank’) has fined KBC Bank Ireland Plc (‘KBC‘ or the ’Firm‘)
1,400,000 and reprimanded it for breaches of the Code of Practice on Lending to Related Parties
2010, and the Code of Practice on Lending to Related Parties 2013 (collectively ’the Code‘). The
breaches have been admitted by the Firm. This is the first enforcement action brought by the
Central Bank against a credit institution for breaches of the Code.
The Central Bank introduced the Code in 2011 to guard against abuses in lending to related parties
and as part of the Central Bank’s regulatory approach following the financial crisis. Under the
Code, relevant firms must obtain the prior approval of their Board or a subcommittee thereof,
before they can enter into, or vary loan transactions with related and/or connected parties, which
include directors, senior managers, significant shareholders of the firm and spouses or domestic
partners.
The breaches of the Code occurred from 26 September 2012 to 23 February 2016, during which
time the Firm failed, on eighteen separate occasions to:

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