The Relationship Frameworks provide safeguards as to the separate management of each of the State's shareholdings in Irish credit institutions in order to ensure that those interests, and the management of those interests, do not lead to a prevention, restriction or distortion of competition in contravention of merger control or competition law.
In both the Relationship Frameworks with AIB and Permanent TSB, it is recognised that the banks remain a separate economic unit with independent powers of decision and that their Board and management teams retain responsibility and authority for determining strategy and commercial policies and conducting their day-to-day operations. However under Clause 11 of each of frameworks, both banks would be obliged to consult with me if they were proposing a disposal of a loan/loans for an amount in excess of €100 million and €50 million respectively. Should I be consulted on the sale of mortgage loans in the future I would carefully consider the matter based on the facts including the impact on profit, capital and funding in AIB and Permanent TSB respectively. I have no current intentions to review or ammend the Relationship Frameworks.