Dáil Éireann Debate, Wednesday - 3 February 2010
114 Deputy Brian Hayes asked the Minister for Finance if he has had discussions with the European Commission regarding the future structure of the banking sector here in view of State aid decisions and consolidation; and the policy that he is advocating to provide a stable competitive banking sector which does not expose the taxpayer to future risks. [5230/10]
View answerI refer the Deputy to the comments I made in the course of my Second Stage Speech on the National Asset Management Agency (NAMA) Bill 2009 on 16 September 2009, in particular my observation that while the banking system can revive and serve our economy in a proper manner, the existing structures cannot remain the same.
The three largest banks (Allied Irish Banks, Anglo Irish Bank and Bank of Ireland) have prepared restructuring plans to meet EU requirements arising from recapitalisation and these plans have been submitted to the EU Commission for consideration. Considerable discussion, dialogue and exchange of information is continuing as the Commission undertake their assessment of the restructuring plan in line with the applicable State aid rules. It is too early to speculate on how long this process will take and when final approval of the restructuring plan will be granted by the Commission, however, I am confident that this restructuring process will result in a reformed and reinvigorated banking system. The Government is committed to working with the Commission and the bank to achieve the best possible outcome for the country as a whole and the taxpayer.
