Terence Flanagan
Question:124 Deputy Terence Flanagan asked the Minister for Finance the legislative changes made after the banking crisis here; and if he will make a statement on the matter. [36724/12]
View answerThursday, 19 July 2012
Questions (124)
Written answers
The table sets out the main legislative provisions related to the banking crisis enacted since August 2008 together with descriptions of their purposes:
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Legislative provision |
Purpose |
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1. Credit Institutions (Financial Support) Act 2008S.I 411 of 2008 — Credit Institutions (Financial Support) Scheme 2008 |
To provide, in the public interest, for maintaining the stability of the financial system in the State and for that purpose to provide for financial support by the Minister for Finance in respect of certain credit institutions, to amend the competition Act 2002 and other enactments, and to provide for connected matters.This Scheme, made under Section 6(4) of the Credit Institutions (Financial Support) Act 2008, provided a State guarantee to credit institutions covered under the Act in respect of liabilities defined to include retail and corporate deposits (to the extent not covered by existing deposit protection schemes), interbank deposits, senior unsecured debt, asset covered securities and dated subordinated debt as qualified. The Scheme was in operation from 30 September,2008, to 29 September, 2010, inclusive and on which latter date it ceased. |
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2. Credit Institutions (Eligible Liabilities Guarantee) Scheme:S.I. 490 of 2009 — Credit Institutions (Eligible Liabilities Guarantee ) Scheme 2009 |
This Scheme, also made under Section 6(4) of the Credit Institutions (Financial Support) Act 2008, provides a State guarantee for deposits (excluding deposits covered by the Deposit Guarantee Scheme); senior unsecured certificates of deposit; senior unsecured commercial paper; other senior unsecured bonds and notes; and other forms of senior debt specified by the Minister for Finance consistent with State Aid rules. The Scheme came into effect on 9 December, 2009, and has subsequently been amended by S.I. on a periodic basis to permit its prolongation, subject to EU Commission approval on a six-monthly basis. The current period of prolongation runs until 31 December, 2012. |
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3. Financial Services (Deposit Guarantee Scheme) Act 2009 (No. 13 of 2009) |
To give legal effect to the Government announcement of 20 September 2008 to increase the level of deposit protection to €100,000. |
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4. Amendments to the Deposit Guarantee Scheme (DGS):Directive 2009/14/EC of the European Parliament and of the Council of 11 March 2009 |
To give effect to amendments to Directives 94/19/EC on DGS as regards the coverage level and the payout delay was transposed by the European Communities (Deposit Guarantee Schemes) (Amendment) Regulations 2009 (S.I. 228 of 2009). |
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5. Anglo Irish Bank Corporation Act 2009 |
To provide for the transfer of all of the shares in Anglo Irish Bank to the Minister for Finance or the Minister’s nominee, to provide for the removal and appointment of persons from certain offices or employment with Anglo Irish Bank, to extinguish certain rights in Anglo Irish Bank, to disapply provisions of the Companies Acts and other enactments to Anglo Irish Bank, to provide for the appointment of an assessor to assess whether compensation should be paid to persons who were affected by the transfer of shares and rights to the Minister For Finance. |
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6. National Asset Management Act 2009S.I. No. 127/2010 |
To establish the National Asset Management Agency (NAMA) for the purposes of acquiring, holding, managing and realising certain assets from certain persons to be designated by the Minister for Finance. To effect expeditious transfers of such assets, taking the necessary steps to protect, enhance and better realise the value of assets transferred to the body, to facilitate the performance of the Agency of other functions related to the management or realization of those assets. To facilitate the restructuring of credit institutions of systematic importance to the economy. To give NAMA powers in respect of land and interests in land, to provide for the issuing of debt securities by the Minister for Finance.The Act also provided for an amendment to the Building Societies Act 1989 to allow the Minister for Finance to subscribe for special investment shares in a building society.Guidelines Issued Under Section 210(1) of the National Asset Management Agency Act 2009 Regarding Lending Practices and Procedures and Relating to the Review of Decisions of Participating Institutions to Refuse Credit Facilities. |
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7. Credit Institutions (Stabilisation) Act 2010 |
To make provision, in the context of the National Recovery Plan 2011-2014 and the EU/IMF Programme of Financial Support for Ireland, in relation to the stabilisation, and the preservation or restoration of the financial position of certain credit institutions |
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8. The European Communities (Credit Rating Agencies) Regulation S.I. No. 247 of 2010 |
To amend the original Credit Rating Agencies (CRA) I Regulation 1060/2009 and fulfil Ireland’s obligation to appoint a competent authority for CRAs and to impose sanctions for breaches of the Regulation. |
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9. Central Bank Reform Act 2010 |
To abolish the Irish Financial Services Regulatory Authority and create a unitary Central Bank of Ireland. The Act also introduced a fitness and probity regime for the Irish financial services sector. |
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10. Transposition of Capital Requirements Directive II:S.I. No. 627 of 2010 transposing Directive 2009/111/EC of the European Parliament and of the Council of 16 September |
To give effect to amendments to Directives 2006/48/EC, 2006/49/EC and 2007/64/EC as regards banks affiliated to central institutions, certain own funds items, large exposures, supervisory arrangements, and crisis management. |
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11. Transposition of Capital Requirements Directive III:S.I. No. 625 of 2010 transposing Directive 2010/76/EU of the European Parliament and of the Council |
To give effect to amendments to Directives 2006/48/EC and 2006/49/EC as regards capital requirements for the trading book and for re-securitisations, and the supervisory review of remuneration policies |
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12. Euro Area Loan Facility Act 2010 |
To facilitate the granting of financial assistance to Greece through allowing Ireland’s participation in the Greek Loan Facility. |
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13. European Financial Stability Facility Act 2010 |
To provide for the State’s participation in the European Financial Stability Facility. |
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14. European Financial Stability Facility and Euro Area LoanFacility (Amendment) Act 2011 |
To enable effect to be given to an amendment to the European Financial Stability Facility Framework Agreement and to facilitate amendment of the Greek Loan Facility so facilitating the granting of further EU financial assistance to Greece. |
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15. Central Bank and Credit Institutions (Resolution) Act 2011 |
To provide an effective and efficient resolution regime for credit institutions that are failing or likely to fail ensuring protection of the Exchequer and stability of the financial system and of the economy. To safeguard the interests of depositors and secure the continuity of banking services generally. |
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16. Finance Act 2011 |
Finance Act 2011 provided for a special high rate of Universal Social Charge which would apply to bonuses paid to all relevant employees of specified institutions.Specified institutions are those that have received financial support under either or both the Credit Institutions (Financial Support) Act 2008 and the National Pensions Reserve Fund Act 2000.The charge is applied to the bonus at 45% and it does not exempt Income Tax and PRSI — this will leave an aggregate charge of 90% (USC 45%, Income Tax 41%, PRSI 4%). |
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17. Insurance (Amendment) Act 2011 |
Amended the 1964 Insurance Act in order to change the scope of the Insurance Compensation Fund from one which covered the risks of policyholders of Irish authorised companies to one which covered all insured risk in the State, except for specific excluded risks. |
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18. General Government Secured Borrowings Order 2011 (S.I. No. 40 of 2011) |
To prescribe the persons and bodies subject to the provisions of Section 67 of the Credit Institutions (Stabilisation) Act 2010, which provides that secured borrowing by the prescribed persons and bodies requires the consent of the Minister for Finance. |
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19. Euro Area Loan Facility (Amendment) Act 2012 |
To facilitate amendment of the Greek Loan Facility so facilitating the granting of further EU financial assistance to Greece. |
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20. European Stability Mechanism Act 2012 |
To facilitate the establishment of the European Stability Mechanism (ESM) and to allow for the State’s participation in it. |