CENTRAL BANK PROPOSAL WOULD FORCE LENDERS TO EXPLAIN DECISIONS - Banks will have to increase the amount of information they give to small and medium-sized enterprises looking for credit under proposals from the Central Bank.
The bank has published a paper as part of a review of the Code of Conduct for Business Lending to SMEs, which was introduced in 2009, and is inviting submissions with a deadline of April 13th. Among the changes being looked at are requiring lenders to provide reasons for declining credit that are specific to the application that was refused. A review conducted by the Central Bank found that lenders typically used standard letters that provided limited information as to why an application was declined, says the Irish Times. Furthermore, when it was said that more information had been supplied verbally, it was sometimes the case that no record of these discussions existed within the lender. The bank is proposing changing the code so that the appeals provisions are expanded to include decisions on declining or withdrawing credit and decisions regarding terms and conditions.
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FAMILIES OFFERED €1,000 LURE TO SWITCH MORTGAGE LENDER - The market for switching mortgages is set to reignite as a leading bank is offering up to 1,000 to those who move their home loan from competitors. Permanent TSB will pay a slice of the legal costs of those who switch, as lenders once again chase mortgage business from people who already own homes. Sales of homes have rocketed by almost 30% in the past year, but new figures reveal that cash buyers continue to snap up the bulk of properties, reports the Irish Independent. The market for new mortgages is still severely limited, but the move by Permanent TSB shows that banks are beginning to offer lucrative deals to those who switch. The switcher market has been non-existent since the downturn. But it is set to become hugely attractive again, as banks including Bank of Ireland, KBC and Permanent TSB now offer much lower rates which could save switchers thousands of euro. Switching to a lender offering the best rates in the market can mean a difference of almost €2,000 a year on a mortgage of €200,000.
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IT FIRM VERSION-1 CONTINUES TO BRANCH OUT IN UK - Leading Irish IT consulting and managed services provider, Version-1, has continued its “aggressive” acquisition-led growth strategy by purchasing a UK company for an undisclosed sum, writes the Irish Examiner. The acquisition of Birmingham-based Patech Solutions - a near 20-year-old Oracle consulting practice -brings to five the number of firms the Dublin company has snapped up as part of its latest expansion drive. “Patech is a close fit with our aggressive acquisition criteria and strengthens our public sector profile and our Oracle practice across Ireland and the UK,” said Version-1’s chief executive, Justin Keatinge. “With 65 staff, Patech has an enviable pool of e-business talent on which Version-1 can build. Similar to Version-1, Patech has a successful and very strong public sector record, a sector in which we are keen to grow, so it is an exciting opportunity,” Mr Keatinge added. The company sees the combination of its and Patech’s services as an opportunity to deliver a complete line of technology-enabled solutions and services, across a range of products.
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BANKING BONUSES SET TO DISAPPOINT IN CITY AND ON WALL STREET - Bankers on both sides of the Atlantic are fighting over a diminished bonus pool this year, according to executives. In the UK, most investment banks expect to see bonuses fall after a tough year, but are still braced for political sensitivities over the topic given the looming general election, writes the Financial Times. At US banks, several of which report results this week, payouts are also set to fall. Traders can expect the worst declines after a weak fourth quarter. Citigroup decided last week that the bonus pool for traders would fall about 5-10%, according to people familiar with the matter, after earlier pledging to hold it flat. Citi’s advisory bankers can expect a modest increase. One finance officer at a large Wall Street bank said it had been difficult to satisfy the warring parties: mergers and acquisitions and equity underwriting enjoyed a good year but these advisory bankers never suffered the same bonus cuts as traders so they should not expect a big rebound in payouts. In London people close to big City investment banks such as Deutsche Bank and Barclays said their bonus pools had been hit by weaker fixed-income trading figures and the impact of a European bonus cap, limiting payouts to no more than twice a banker’s fixed pay.
