asked the Minister for Finance whether he accepts that, in the event of the failure of a bank holding a licence from the Central Bank, the interests of the depositors should be safeguarded on the same basis as the interests of policy-holders are safeguarded in the event of the failure of a licensed insurance company.
Ceisteanna—Questions. Oral Answers. - Bank Depositors' Interest.
12.
The Central Bank has submitted proposals to me within the past few days designed to strengthen the protection provided for depositors in licensed banks under the Central Bank Act, 1971. I agree that a review of the Act is necessary and I have asked my Department to examine the proposals, in consultation with the bank, as expeditiously as possible.
Pending the completion of this examination, I am unable to comment on the relevance to the very different circumstances of banking of the arrangements provided in the Insurance Act, 1964, in respect of non-life insurance companies.
Does the Parliamentary Secretary know whether the proposals received within the last few days from the Central Bank envisage the return of money in full to depositors who suffered in circumstances such as described in the question?
As the Deputy knows, the case he is referring to is sub judice as far as the Minister is concerned but the proposals relate to several aspects, including the financial recompense which the Deputy mentioned.
Would the Parliamentary Secretary accept that apart from the question of the hardship that can be created in cases of this kind for people who might have invested their life savings, particularly people abroad who thought they were assisting this country and who thought they had the guarantee of the Central Bank and the Minister for Finance—the question of recompense would be dealing with the hardship caused—the good name of the Irish banking system could be at stake and that this should be taken into account in any consideration of the proposals referred to by the Parliamentary Secretary.
As the Deputy is aware, the case he has in mind is sub judice, so it would be inappropriate for me to comment on it. All I can say is that these proposals only came in in the last few days. I am sure the Deputy's point will be taken into account on consideration of them.
Will the Parliamentary Secretary ensure that the points made are brought to the attention of the Minister with as much force as is possible?