The Financial Regulator has published its Report into the Examination of Loans to Directors and connected parties at six of the credit institutions covered by the Government Guarantee Scheme for the period December 2005 to December 2008.
The review covered the following institutions: Allied Irish Banks, Bank of Ireland, EBS Building Society, Irish Life and Permanent plc, Irish Nationwide Building Society and Postbank Ireland Limited.
The report does not cover Anglo Irish Bank which is the subject of a separate, on-going investigation by the Financial Regulator.
Following the review, the Financial Regulator has issued new requirements in relation to the disclosure of director's loans and has written to all credit institutions regarding the matters raised during the examination.
All credit institutions are required to make the following disclosures regarding directors' loans and loans to connected persons of a director:
- the amount owed by the person to whom the loan or agreement was made in respect of principal and interest at the beginning and end of the period covered by the financial statements
- the maximum amount of the liability during the period
- the amount of any unpaid interest, and
- the amount of any provision that has been made in respect of any failure, or anticipated failure, to repay all or part of the loan.