Dáil Éireann Debate, Wednesday - 10 March 2021
270. Deputy Ged Nash asked the Minister for Finance if there is a citation in the relationship framework agreement between the Minister and a bank (details supplied) that prohibits or in any way prevents him from meeting with the bank to discuss and negotiate on a change to that agreement; and if he will make a statement on the matter. [12618/21]
View answerAs the Deputy is aware and as set out in the Relationship Framework for Bank of Ireland, due to its systemic importance to the Irish financial system, the bank received significant support from the State in the financial crisis.
This support led to the State becoming a significant shareholder in Bank of Ireland with the approval of the European Commission. This approval was subject to the Minister and the Bank entering into the Relationship Framework on terms approved by the European Commission. One of the reasons for this was to ensure that the Minister’s shareholding did not result in breaches of competition law rules.
Critically, and as set out in the Relationship Framework, any amendments to, or revocation or replacement of, the Relationship Framework must be made following consultation with Bank of Ireland and upon the instruction, or with the agreement, of the European Commission.
As is clearly set out in the Relationship Framework, the board of Bank of Ireland has full responsibility and authority for all of the operations of the bank in accordance with its legal, fiduciary, and regulatory obligations. The Relationship Framework further provides for safeguards as to the separate management of each of the State’s interests 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 rules.
It is therefore the case that any proposed amendment to the Relationship Framework must not only be in accordance with the regulatory requirements under which Bank of Ireland operates, the State Agreements referred to in the Relationship Framework and the law, the proposed amendments must also be approved by the European Commission following consultation with Bank of Ireland.
