I propose to take Questions Nos. 25 and 26 together.
I note that the Deputy refers to correspondence to the Office of the Minister for Enterprise, Trade and Employment, however the information supplied does not provide detail of any such correspondence.
My officials contacted the Deputy's office for clarification on the matter. However, there is no record of receipt in my Department of the correspondence referred to. The Deputy may wish to provide the detail referenced.
In the meantime, my officials contacted the Competition and Consumer Protection Commission (CCPC) who advised that in May 2022 the CCPC cleared, subject to a number of legally binding commitments, the proposed acquisition by the Governor and Company of the Bank of Ireland (Bank of Ireland) of certain assets and liabilities of KBC Bank Ireland plc (KBC).
CCPC officials confirmed that Bank of Ireland is committed to the following remedies:
In support of the growth of non-bank lenders in the Irish mortgage market they will make €1 billion in total funding available to certain non-bank lenders through the purchasing of securities issued by them, to increase their funding capacity and reduce their cost of funding; and,
To assist innovation in the Irish mortgage market, they will make €1 million in funding available for distribution to companies involved in developing innovations relevant to the market for the provision of mortgages in the State; and
To address the effects of the transaction on KBC mortgage customers, Bank of Ireland will adopt measures, including:
• honouring the fixed rate included in the existing terms and conditions of KBC fixed rate mortgages for the remainder of the fixed term,
• honouring the 0.2% discount in mortgage rate of every KBC customer eligible for that discount at the date of mortgage transfer to BOI, for as long as their transferred mortgage is held with BOI, without being required to hold a BOI current account, and,
• offering the variable rate equivalent to that of KBC migrated variable rate customers, as well as BOI fixed rate options, to fixed rate KBC mortgage customers on their first roll-over post-migration.
Lastly, my officials have been advised that the CCPC has monitored Bank of Ireland’s compliance with these commitments since May 2022, and is satisfied that Bank of Ireland has complied with the commitments.
