asked the Minister for the Environment if he will specity for those financial institutions for which he is responsible: (1) the legislation under which they are regulated or supervised by his Department; (2) the principal prudential ratios and requirements to which they must conform, for example, capital, reserve and liquidity; (3) the concessionary taxation arrangements vis-á-vis other financial institutions; and (4) the frequency of reporting, auditing and inspections by his Department.
Written Answers. - Financial Institutions.
69.
The only financial institution in relation to which I have direct responsibility is the Housing Finance Agency plc. which is a State-sponsored body operating under the aegis of my Department. In addition, I am responsible for policy and legislation in relation to building societies but not for their supervision which is a matter for the Registrar of Building Societies. The information requested by the Deputy in relation to the Agency and building societies is as follows:—
Housing Finance Agency
1. The Housing Finance Agency Acts, 1981 to 1985.
2. No such ratios or requirements apply.
3. Section 24 of the Finance Act, 1985, provides that income arising to the agency, since incorporation, from the business of making loans and advances under section 5 of the Housing Finance Agency Act, 1981, is exempt from corportation tax.
4. The annual report and accounts, of the agency are submitted to the Minister and laid by him before the Houses of the Oireachtas on an annual basis. In addition there is ongoing liaison between my Department and the agency in relation to its operations.
Building Societies
1. The Building Societies Acts, 1976 to 1986.
2. (i) The Registrar of Building Societies has recommended to societies with a reserve ratio of less than 4 per cent that their financial policies should be such as to ensure that a reserve ratio of at least this level is reached as soon as possible;
(ii) The Building Societies Regulations, 1987, require a society wishing to engage in the forms of unsecured lending permitted by the Building Societies (Amendment) Act, 1986, to satisfy the registrar that, in the last financial year in respect of which its annual accounts have been laid before an annual general meeting of the society, the ratio of its reserves to its assets was not less than 4 per cent.
(iii) The Building Societies (Prescribed Investments) Regulations, 1984, (S.I. No. 186 of 1984) prescribes the investments in which a building society may invest its surplus funds.
3. There are no concessionary taxation arrangements in force in relation to building societies per se. However, in common with other institutions which do not distribute their surpluses, building societies are subject to corporation tax at a rate of 35 per cent.
4. The prudential supervision of building societies is the responsibility of the registrar of building societies who has extensive powers under the Acts. Section 70 of the 1976 Act requires every society to submit an annual return to the registrar within a specified period. An auditor's report must be attached to each annual return.