Vol. 424 No. 10
55 Mr. Quinn asked the Minister for Finance if he has completed his consideration for the consolidation and development of the two State banks, ICC Bank and ACC Bank, as well as the TSB Bank, which is subject to his control, and the Post Office Savings Bank, in the context of the need to provide a third banking force so as to ensure real and effective competition; and if he will make a statement on the matter.
The Government has agreed, in principle, to offer for sale ACC Bank plc and ICC Bank plc. Having filled an important role in meeting the shortage of banking facilities in their respective sectors over the years since ICC Bank and ACC Bank were established, it can now be said that no such shortage exists. ICC Bank and ACC Bank are thus no longer required as an arm of State Policy and, in the post-1992 banking environment, they will better realise their full potential in a private sector setting. A decision to sell these bodies will depend on the sale terms being acceptable to the Government.
TSB Bank is managed by Trustees and supervised by the Central Bank in accordance with the Trustee Savings Banks Act, 1989. In the context of the recent amalgmaation of the Cork and Limerick Savings Bank and the Trustee Savings Bank, Dublin, the Trustees have accepted the need to examine all future development options. Under the provisions of the above Act, any reorganisation of Trustee Savings Bank will require Oireachtas approval.
The Post Office Savings Bank is managed on an Agency basis by An Post, who also operate Exchequer small savings schemes. An Post and the NTMA are currently examining development options for the modernisation of the POSB, with a view to increasing its competitiveness.
