Non bank lenders may raise interest rates more rapidly than traditional banks

Non-banks have lower average interest rates than banks in nearly all segments

Non-banks provide credit to borrowers less likely to be served by traditional banks.

Non-bank lenders now account for 13% of the new mortgage lending, according to a new report from the Central Bank.

According to the research, the share of new mortgage lending has grown significantly from the 3% market share in 2007 and is viewed as welcome competition as Irish consumers continue to pay some of the highest interest rates in the EU. Their presence is also seen as important in light of the planned departure by Ulster and KBC banks that will see the remaining pillar banks AIB, Bank of Ireland and Permanent TSB further consolidate their positions.