asked the Minister for Finance if he will state (a) the terms of the arrangement made between the Central Bank and the Irish commercial banks by which the latter will maintain deposits with the Central Bank, (b) the rate of interest (if any) payable on such deposits, (c) the amount of the deposit of each of the commercial banks, and (d) whether it is intended that the Central Bank will act as a clearing for all inter-bank balances, whether arising inside or outside the State.
Ceisteanna—Questions. Oral Answers. - Arrangement between Central Bank and Commercial Banks.
As regards (a) the Central Bank, with my consent, has made Regulations pursuant to Section 51 of the Central Bank Act, 1942, requiring licensed bankers to settle through the Central Bank all clearances arising between members of the Dublin Bankers' Clearing Committee at the Central Clearing in Dublin and to make and maintain with the Central Bank such balances as may be necessary for the purpose. The Regulations came into operation on the 1st November, 1958. Copies have been presented to Dáil Éireann. (b) and (c) are matters which the Central Bank treat as confidential. In regard to (d) the Regulations relate only to clearances arising at the Central Clearing in Dublin. These cover mainly transactions within the State but may cover also transactions involving branches in Britain or the Six Counties of banks which are members of the Clearing. It is not proposed at present that the Central Bank should act as a clearing for other inter-bank balances.