Thursday, 12 July 2012

Questions (65)

Michael McGrath


64 Deputy Michael McGrath asked the Minister for Finance his views on the impact for customers of suggestions that Ulster Bank is moving its regulatory supervision to the Bank of England; and if he will make a statement on the matter. [34206/12]

View answer

Written answers (Question to Minister for Finance)

I have been informed by the Central Bank that it has not received any formal application to change the regulatory or legal status of Ulster Bank Ireland Ltd from that of a subsidiary of Royal Bank of Scotland Group. However, there are some informal indications that Ulster Bank Ireland Ltd may change its regulatory status and be subject to regulation by the Bank of England and the UK Financial Services Authority as in the case of its parent, Royal Bank of Scotland.

That option is available for all banking groups in terms of how they operate in jurisdictions under European regulation, whether as subsidiaries or as branches.

The Central Bank has full prudential and conduct of business supervisory control over licenced banking subsidiaries. For banks that would opt to operate as branches, the Central Bank would retain powers over conduct of business regulation and liquidity requirements. Accordingly, the Central Bank would maintain its full consumer protection remit over all banking entities operating in Ireland irrespective of their regulatory configuration.