Regulatory Alerts2013-07-31
Related Party Lending FAQ 31 July 2013
The Central Bank of Ireland issued this guidance document to clarify the obligations imposed by the Code of Practice on Lending to Related Parties on credit institutions operating in Ireland. The document details the revised code's stricter requirements, including reduced lending limits, expanded definitions of related parties, and mandatory prior Central Bank approval for loans exceeding one million euros. It further explains specific exemptions for debt restructurings, reporting protocols, and the legal basis for enforcing these prudential standards to prevent conflicts of interest and abuse.
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