Banks win, new quango wins – People lose

The Credit Review Group was launched on 6th April last.

The purpose of the quango is to ensure that small and medium-sized enterprises (SMEs) have access to credit from the banks who are participating in the NAMA scheme.

Borrowers can approach the CRG if they believe they have been treated unfairly by any of the banks availing of NAMA.

But, according to an RTE news report, the CRG cannot force banks to change their minds on any loan decision but banks will be required to comply with recommendations.

This is typical banana republic logic.

On the one hand we’re told that banks must comply (with recommendations) but they cannot be forced to do so.

This arrangement allows the state to say they’re getting tough while continuing to allow the banks do as they please.

The banks win, the new quango wins (big salaries and pensions) but, as always – the people lose.