Dáil Éireann Debate, Wednesday - 23 March 2011
42 Deputy Dessie Ellis asked the Minister for Finance when he plans to restructure the boards of the banks and replace the directors as per the programme for Government; when the review into the remuneration schemes at banks will be undertaken; and if he will make a statement on the matter. [5400/11]
View answerThe commitments referred to by the Deputy contained in the "Government for National Recovery 2011 – 2016" programme — namely those relating to the restructuring of the boards of the covered institutions and the review of remuneration schemes operating in such institutions – will form a vital part of this Government's objective of making the banking system an engine of economic recovery by restoring public and market confidence in its financial health, management competence and ethical integrity. Actions on these matters will be addressed by this Government and the regulatory authorities as appropriate at the earliest possible date consistent with the on-going discussions concerning banking matters. In this regard the Deputy will note the action of the Central Bank, announced yesterday, to review the fitness and probity of all existing executive and non-executive directors of banks which have received Government assistance which is aligned with the objective above. The Central Bank is also reviewing how credit institutions are addressing the new EU wide regulations, effective from 1 January 2011, on the remuneration policies and practices of credit institutions which are designed to impose a binding obligation on such institutions to have remuneration policies and practices that are consistent with and promote sound and effective risk management, accompanied by high level principles on sound remuneration.
