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New Strategic Banking Corporation of Ireland Explained

10 July 2014

Legislation to enable the establishment of the Strategic Banking Corporation of Ireland (“SBCI”) has been published and the Government has announced its intention to enact the legislation before the Summer recess (end of July 2014) so that the SBCI can be established and operational by the end of 2014. Its establishment is to facilitate access to national and international sources of funding and then to distribute such funding/credit to existing and new providers of credit to SMEs in Ireland.

Strategic Banking Corporation of IrelandThe new strategic bank, SBCI will act as an intermediary or bridge between its capital providers, including the German State bank KfW, the European Investment Bank, Irish Strategic Investment Fund and other potential funders to achieve the Government’s objective of providing loans to individuals and SMEs across all domestic industry sectors in Ireland.

The schematic diagram published by the Department of Finance (see www.finance.gov.ie) sets out a mode of operation where the current retail banks in Ireland will act as the distribution platform. The government also anticipates and seeks to encourage new entrants into the Irish SME lending market following the reduction in number of credit providers over the last decade.

Related Expertise

Banking Law
Corporate Law
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