News poses more credit issues for SMEs

THE pending closure of Bank of Scotland’s entire Irish operations should not adversely affect the bank’s existing mortgage customers here, but could pose further credit challenges for the country’s small business community.

Bank of Scotland Ireland (BoSI) will formally cease offering banking products as of the end of this year. All existing business will be transferred to Bank of Scotland in Britain and will be regulated by the Financial Services Authority (FSA) there.

The bank — now owned by the Lloyds Banking Group — closed its retail banking arm, Halifax Ireland, earlier this year with the loss of 750 jobs. This left it with around 850 employees in its business banking arm, most of whom will now be transferred to a new managed services company, the business of which is expected to be taken over by a consortium of outgoing BoSI management figures.