asked the Minister for Finance if the directive respecting advances to customers recently issued by the Bank of England governs Irish banks with branches operating in Great Britain and/or Northern Ireland; if there was any consultation with or communication to such Irish banks on this matter prior to the issue of the said directive; if under the English banking legislation of 1946 such directive, if and when authorised by the Treasury, may be made legally bind-in on such Irish banks; and if he or the Government has any similar power to issue similar directives binding banks transacting business in Ireland.
Written Answer. - Bank of England Directive on Advances.
58.
I assume that the Deputy is referring to the letters which, according to published reports, were addressed by the Governor of the Bank of England on 8th December, 1964, to the Chairman of the Committee of London Clearing Bankers and others. I do not know whether or not these letters were issued as recommendations or directions under the legislation to which the Deputy refers and indeed I have no information on this matter other than that contained in the published reports.
As regards the third part of the question, I would see no reason to doubt that the British authorities have or could obtain power to secure compliance with British law by any branch bank operating within their jurisdiction.
The reply to the last part of the question is that Irish banking legislation does not include any similar power authorising the issue of similar directions to banks in this country.