Far be it from Cantillon to pity a bank, but poor old AIB became – courtesy of The Irish Times – the poster boy for hyper-restrictive mortgage lending in the Covid-19 era. A leaked document published last Monday showed the bank had introduced wide-ranging restrictions on lending, including a de facto ban on mortgage lending to those in receipt of government wage subsidies. The banks and the State need to start thinking seriously about what credit and consumer lending might look like during this period. The bifurcation of the economy between those who have, and those who don’t, may become more defined still. You may now be allowed apply but how many people will be advanced letters of offer, or be allowed to draw down funds, while subsidies remain in place?

Source: The Irish Times July 04, 2020 04:52 UTC