Vol. 488 No. 1
82 Mr. J. O'Keeffe asked the Minister for Finance his views on whether the bank deposit guarantee scheme, with a provision for maximum compensation of £10,000, is inadequate; and if he will make a statement on the matter. [5513/98]
The terms and conditions governing deposit protection in Ireland are set out in the European Communities (Deposit Guarantee Schemes) Regulations, 1995, as amended by the Central Bank Act, 1997.
These regulations implemented Directive 94/19/EC of the European Parliament and of the Council on deposit guarantee schemes.
Under the Irish scheme, the maximum level of cover to any eligible depositor is 90 per cent of aggregate qualifying deposits held by that depositor subject to a maximum compensation of ECU15,000. At current exchange rates, this is equivalent to some IR£12,000. This accords with out obligations under Directive 94/19/EC. However, the Deputy will be glad to hear that the directive provides that the maximum level of cover must be increased to ECU20,000 by 31 December 1999.
I would point out that the primary purpose of the deposit guarantee scheme is to protect small depositors and that the levels in the scheme are deliberately set with this purpose in mind.
