AIB to reconsider broker plans

ALLIED Irish Bank has scaled down plans to close off lending through intermediary brokers that channelled hundreds of millions of euro to small businesses throughout Ireland.

The bank had written to small finance lending brokers throughout the country telling them – in a one-sentence letter – that AIB was withdrawing crucial letters of recognition which enabled the brokers to negotiate loans with the bank for clients under Financial Regulator guidelines.

However, following queries from the Irish Examiner, lending firm principals have been told that the bank is reconsidering their plans and will re-start relationships with some, if not all, of the finance houses involved.