Dáil Éireann Debate, Wednesday - 20 July 2011
97 Deputy Thomas P. Broughan asked the Minister for Finance the position regarding the proposed merger of EBS and AIB; if all the EBS staff will transfer to AIB; if the EBS and AIB branch system will be reconfigured; and if he will make a statement on the matter. [21728/11]
View answerSince 1 July 2011 EBS has been a fully owned subsidiary which benefits from the full support of AIB. The new merged entity will be a stronger and more domestically focused institution which will leave it better placed to service the needs of the Irish economy and will help return the banking system to long-term viability. As announced on the date of the transaction, EBS Limited will initially operate as a standalone, separately branded subsidiary of AIB with its own branch network and the terms and conditions of customers' financial products remain unchanged following the transfer. As a result of the combination, existing EBS staff were also transferred and will initially continue in their previous roles.
This combination is part of the Government's strategy to return the banking system to long-term viability and profitability so it is no longer reliant on State support. The completion of the merger is a structural benchmark under the EU/IMF programme for support and the merger was completed ahead of schedule, three months after it was initially announced. The future organisational and operational structure of the combined entity is under detailed consideration and will be finalised over time in a manner which creates the strongest possible bank which can best meet the future needs of the Irish banking system.
