Regulatory Alerts2013-06-25
Code of Practice on Lending to Related Parties 2013
The Central Bank of Ireland issued this revised Code to prevent abuses and conflicts of interest by requiring credit institutions to conduct related party lending on an arm's length basis. It mandates strict governance protocols, including prior Board approval for loans, independent monitoring, and adherence to specific exposure limits relative to own funds. The document also outlines reporting obligations to the regulator and defines specific exemptions for non-performing and performing loans resulting from debt restructuring or collateral arrangements.
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