Banking

BoI purchase of KBC assets 'may spark higher interest rates’

The Competition & Consumer Protection Commission warned that the €6bn deal was ‘likely to further reduce competition’ in an already highly concentrated market

KBC Bank, Grand Canal, Dublin: Bank of Ireland acquired €9 billion of KBC loans. Picture: Fergal Phillips

Mortgage customers may be forced to pay higher interest rates as a result of Bank of Ireland’s landmark purchase of billions of euro of KBC Bank assets, the competition watchdog warned before signing off on the deal.

In its assessment of Bank of Ireland’s €9 billion acquisition of KBC loans, the Competition and Consumer Protection Commission (CCPC) said the deal was “likely to further reduce competition” in an already highly concentrated market and potentially push ...