Dáil Éireann Debate, Wednesday - 24 September 2008
348 Deputy Seán Sherlock asked the Minister for Finance the steps he will take to ease the credit crunch; if consultations have taken place between his office and the Central Bank and between the Government and the European Central Bank on ways to inject liquidity into the banking sector to facilitate the credit crunch; and if he will make a statement on the matter. [31075/08]
View answerThe prompt actions by international central banks, including the European Central Bank, to provide major injections of liquidity have contributed to greater stability in financial markets internationally, though they continue to remain subject to significant uncertainties. The ability of Irish banks to access liquidity from the European Central Bank has been a major benefit and provided a significant strength in assisting the Irish financial system to withstand difficult financial conditions over the last year. Agreement on the extensive and far-reaching plans announced recently by the US authorities should help to restore confidence to their financial markets with beneficial knock-on effects on wider international markets.
EU Finance Ministers have adopted an extensive roadmap of actions incorporating a work programme aimed at putting in place a comprehensive response to developments in financial markets. This programme includes reviewing along with the EU's international partners how to further improve transparency of complex financial instruments, valuation standards, the prudential framework, risk management and supervision and market functioning including the role of ratings agencies.
Ireland is participating fully in this work at EU level to ensure there is an effective EU-wide system to maintain financial stability taking into account the important cross-border linkages that now exist in EU financial markets. Facilitated by the EU framework for maintaining financial stability my Department is in on-going close contact with both the Central Bank and the Financial Regulator in relation to financial market developments.
