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Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Lending to Small and Medium-Sized Enterprises) Regulations 2015.On 18 December 2015, the Central Bank issued new Regulations for firms lending to SMEs. Regulated lenders (other than credit unions) must comply from 1 July 2016 or, in the case of Credit Unions, from 1 January 2017. According to the Central Bank, the Regulations aim to strengthen protections for SMEs, while also facilitating access to credit, ...
Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Lending to Small and Medium-Sized Enterprises) Regulations 2015.
On 18 December 2015, the Central Bank issued new Regulations for firms lending to SMEs. Regulated lenders (other than credit unions) must comply from 1 July 2016 or, in the case of Credit Unions, from 1 January 2017. According to the Central Bank, the Regulations aim to strengthen protections for SMEs, while also facilitating access to credit, by introducing specific requirements that regulated lenders must comply with.
The Regulations introduce specific requirements for regulated lenders, including:
- Giving SME borrowers greater transparency around the application process;
- Providing SME borrowers with reasons for declining credit, in writing, that are specific to their application;
- Providing greater protections for guarantors;
- Contacting SME borrowers who have been in arrears for 15 working days;
- Warning SME borrowers if they are in danger of being classified as not co-operating; and
- Expanding the grounds for appeal and setting up an internal appeals panel.
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