Irish banking sinks deeper into crisis as KBC follows Ulster out the door

Commentators sound alarm bells as the 'two big boys' look set to control 70% of the Irish mortgage market

The shock decision by Belgian lender KBC Bank to exit the Irish banking market is the latest twist in a brewing crisis for consumers and businesses. Picture: Brian Lawless/PA

The shock decision by KBC Bank, the Belgian lender, to exit the Irish banking market and for most of its €10.5bn of home loans to be gobbled up by Bank of Ireland is just the latest twist in a brewing crisis for consumers and businesses.

It comes just weeks after the decision of Ulster Bank to shut up shop in the Republic and for its €20.5bn in mortgage and business loans to be carved up between AIB and the financially scarred Permanent TSB.