Regulator publishes bank ‘code of conduct’ for mortgage arrears

THE Financial Regulator last night published new rules on how banks will deal with mortgage holders in difficulty and free up credit to small businesses.

Promised by Finance Minister Brian Lenihan in return for a €7 billion recapitalisation of the two biggest banks, AIB and Bank of Ireland, the new “code of conduct” applies to all banks and building societies.

The code on mortgage arrears will come into effect on February 27, while the code for business lending to small and medium enterprises comes into effect on March 13.