Dáil Éireann Debate, Tuesday - 2 December 2014
201. Deputy John McGuinness asked the Minister for Finance if he will provide detailed guidelines on the way the funds of the Strategic Banking Corporation of Ireland will be provided; and if he will make a statement on the matter. [46083/14]
View answerAs the Deputy will be aware, in accordance with Section 5 of the Strategic Banking Corporation of Ireland (SBCI) Act, 2014, the SBCI has been established as an independent company, under the Companies Acts. The legislation provides a mandate to the SBCI and a framework from in which it will operate. Section 8 of the SBCI Act 2014 requires the SBCI to ensure that SMEs have sufficient prudent finance to fund their commercial activities and mandates the SBCI to design credit facilities that meet the needs of SMEs.
While the Minister for Finance is the sole shareholder of the SBCI, the board of the corporation will act independently in fulfilling its duties in ensuring that SBCI has the intended effect on SME financing. Therefore the Minister for Finance will not provide detailed guidelines on the way the funds of the SBCI will be provided.
This arrangement will enable the SBCI to grow its balance sheet to a greater size than it would be if it were to be classed as a part of the Government debt. Giving the SBCI its own independent mandate also makes it more likely can continue on a sustainable basis into the future and will be around to help SMEs both in the post crisis era and far into the future.
