Tuesday, 27 May 2014

Questions (142)

Ciara Conway


142. Deputy Ciara Conway asked the Minister for Finance if his attention has been drawn to a situation (details supplied) regarding banking licences; his views on the veracity of the same; the actions his Department has carried out in relation to same; and if he will make a statement on the matter. [23011/14]

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Written answers (Question to Finance)

I have been informed by the Central Bank that Allied Irish Banks plc has always operated with a banking licence and currently holds a banking licence under Section 9 of the Central Bank Act, 1971. This licence allows the bank to conduct banking business. As defined in the Act, "banking business" means business which consists of (a) the business of accepting deposits payable on demand or on notice or at a fixed or determinable future date, but excluding deposits with a trader from persons employed by him in his trading business or from his customers in the normal course of his trading business and deposits or instalments in respect of the letting or selling of goods under a hire-purchase agreement or a credit-sale agreement, or (b) the business aforesaid and any other business normally carried on by a bank.

In the case of IBRC, once the bank was put into liquidation on the 7th February 2013, the Central Bank withdraw its banking licence which was no longer required as the bank was in wind down.