andMr. P. Barry asked the Minister for Finance if moneys are being collected as fines from the commercial banks by the Central Bank for the exceeding of credit guidelines and, if so, the amount collected this year and the purpose to which it is being put.
Written Answers. - Central Bank Fines Collection.
388.
The Central Bank have not collected fines from the banks but they have taken steps to secure compliance with their credit guidelines. The measures taken include requests to banks to place supplementary deposits with the Central Bank and, where funds have been provided to the banks by way of rediscount or secured advances, the charging of interest at rates higher than would have been the case had credit been growing more slowly.
Receipts by the Central Bank as a result of these measures form part of their general income and cannot be separately identified. The bank have advised me that they do not feel that a separate calculation could be attempted with any accuracy because of the assumptions that would have to be made regarding the extent to which the banking system might have had recourse to the Central Bank in a different credit situation and the terms on which assistance might have been provided.