Business customers will have noticed that banks have adopted a more standardised approach in their dealings with them. New banking regulations have driven this change. Just as money laundering legislation requires banks to obtain documentary evidence of proof of identity and proof of address from businesses who deal with them, the European Capital Requirements Directive (Often referred to as BASEL 11) requires banks to make noticeable changes in their dealings with customers who borrow from them. BASEL 11 has introduced new regulations relating to the capital which banks must hold to support credit risk.|
The Irish Banking Federation in consultation with the banks have produced a guide for business customers that they hope will be of benefit to them to help understand the process.