Bank of Ireland cleared to acquire €8.8bn in KBC loans

Marks a significant step towards the bank's exit from the Irish market

The deal includes KBC’s performing loan assets including mortgages, commercial and consumer loans, along with a small number of non-performing mortgages. Picture: Brian Lawless/PA

The Competition and Consumer Protection Commission (CCPC) has cleared the acquisition of KBC loans by Bank of Ireland.

The deal includes KBC’s performing loan assets including mortgages, commercial and consumer loans, along with a small number of non-performing mortgages.

However, the CCPC said the acquisition is subject to a number of conditions as they had concerns about the loss of competition in the market by the departures of KBC.

One of the conditions means Bank of Ireland will have to make €1bn available to non-bank lenders through the purchasing of securities issued in order to increase their funding capacity and reduce their cost of funding.

Bank of Ireland must also honour the fixed rate of KBC customers for the remainder of the fixed term and honour the 0.2% discount in mortgage rate of every KBC customer eligible for that discount at the date of mortgage transfer to BOI.