KBC fined €1.4m over loan breaches

The Central Bank has fined KBC Ireland €1.4m for an “unacceptable” breach of rules around approving loans to directors and managers and their families, the first sanction since the code was introduced in 2011 to clean up the abuses of the boom years.

The Central Bank detailed the breaches involved 18 instances and occurred over a long period — from 2012 and up to February this year — when KBC Ireland failed to properly approve the related party loans through its board or a committee.

KBC Ireland admitted to the breaches, the Central Bank said.