Bank of Ireland faces fine for its part in tracker mortgage scandal    

Bank of Ireland faces fine for its part in tracker mortgage scandal    

Bank of Ireland is the last of the lenders to be fined under a series of investigations by the Central Bank that started in 2015. 

The Central Bank will wrap up its long investigation into the tracker scandal across Irish banking when it announces on Thursday the size of the sanction on Bank of Ireland. 

The regulator has already fined all other banks involved in the industry-wide scandal that had its roots in lenders removing the benefits of trackers from their customers more than a dozen years ago.                         

Banks had put aside millions of euro to cover the fines and the costs of compensation and retribution.

Bank of Ireland is the last of the lenders to be fined under a series of investigations by the Central Bank that started in 2015. 

Record fine

In June, the Central Bank slapped a record fine of €96.7m on the AIB and its EBS lender over the tracker scandal.

Permanent TSB was the first of the big banking groups to be sanctioned in 2019, under a settlement agreement in which it was fined €21m. Subsequently, KBC Bank was fined €18m and Ulster Bank had to pay €38m, also for dozens of regulatory breaches. 

Mortgage industry experts have long questioned a regulatory process that means that senior bankers have escaped personal censure for their part in a scandal that involved in people losing their homes.  

Critics have also pointed out that the fines and huge costs linked to the investigation are effectively passed onto customers.

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