Ireland’s financial regulator plans new rules to monitor loans to directors, after a borrowing scandal prompted Anglo Irish Bank Corp.’s top two executives to resign last year.
Credit institutions will provide details of the maximum amount of loans made to each director every year, the Dublin- based financial watchdog said today. Banks will also have to disclose the year-end borrowing balance of individual directors.
Anglo Irish Chairman Sean Fitzpatrick resigned in December when it emerged he failed to fully disclose 87 million euros ($111.1 million) in loans from the bank. Chief Executive Officer David Drumm also stepped down, while Pat Neary retired as financial regulator after an inquiry showed the agency failed to take appropriate action in relation to the Anglo loans.
The new rules are due to come into force from March 1.
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