KBC fined €1.4m for rule breach concerning lending to person connected to bank
KBC Ireland has been fined €1.4m and reprimanded for breaching rules on lending to a person connected to bank.
The Central Bank of Ireland said it has fined KBC Bank Ireland Plc and reprimanded it for breaches of the Code of Practice on Lending to Related Parties 2010, and the Code of Practice on Lending to Related Parties 2013.
The breaches have been admitted by KBC, the Central bank said.
Its the first time a bank has been fined under the code, which was introduced to protect against abuses in lending by banks to people with a connection to the institution.
Under the code a bank must obtain prior approval from its board or a board subcommittee before making a loan to a related party – such as a director, senior manager, significant shareholders or the spouse or partner of any of those categories.