Bank of Ireland has secured regulatory clearance to buy certain assets worth €9bn from KBC Bank Ireland.

The approval by the Competition and Consumer Protection Commission (CCPC) is subject to several legally binding commitments. 

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Bank of Ireland will be required to support the growth of non-bank lenders in the Irish mortgage market and buy €1bn worth of securities issued by certain non-bank lenders. 

The bank has also committed to investing €1m to support innovation in the Irish mortgage market. 

Furthermore, some additional measures require the Bank of Ireland to honour the fixed rate of KBC fixed-rate mortgages and offer discounts to eligible customers.

The deal covers €8.8bn of performing mortgages, €100m of mainly performing commercial and consumer loans, and approximately €4.4bn of deposits.

It also includes non-performing mortgages (NPEs) worth nearly €300m.

The CCPC said: “Following detailed consideration and further analysis and having taken into account the above commitments given by Bank of Ireland, the CCPC has determined that the proposed acquisition will not substantially lessen competition and, therefore, the proposed acquisition can be put into effect.”

Bank of Ireland group CEO Francesca McDonagh welcomed the announcement, which is another step towards KBC’s exit. 

“Bank of Ireland has been part of Ireland’s commercial, economic, and social fabric for almost 240 years, and we look forward to providing an excellent long-term home for KBC Bank Ireland customers. We are committed to delivering a smooth and seamless migration for KBC customers, ensuring strong customer protections and financial stability within the Irish banking sector and the broader economy,” she said.