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Irish central bank fines KBC Bank Ireland €1.4M

The CentralBank of Ireland fined KBC Bank Ireland Plc €1.4 million and reprimanded it forbreaches of code of conduct on lending.

The KBC GroupNV unit on multiple occasions, from Sept. 26, 2012, to Feb. 23,2016, failed to put in place adequate policies and processes for lending;obtain the prior approval of its related party lending committee prior togranting a loan and extending maturity dates; and obtain prior approval of therelated party lending committee when managing four loans to two parties.

KBC Bank Ireland admitted the breaches.

The central bank said this is was the first time it had broughtan enforcement action against a credit institution for breaching the code.