Banking Sector Regulation.

Dáil Éireann Debate, Wednesday - 3 February 2010

Wednesday, 3 February 2010

Ceisteanna (91)

Liz McManus

Ceist:

154 Deputy Liz McManus asked the Minister for Finance his views on the viability of a banking division at a bank (details supplied) as an independent going concern in view of its unsustainable loans to deposits ratio and dependence on the European Central Bank’s extraordinary liquidity measures and money market funding; if he has a preference for it to remain as an independent credit institution, to acquire a strategic partner from overseas or to merge with one or more of the other domestic credit institutions; if he will comment on recent reports that the bank rejected his proposal that they merge with another bank in the weeks after the bank guarantee was issued; if he envisages such a merger as a viable option. [5316/10]

Freagraí scríofa

Minister for Finance (Deputy Brian Lenihan)

The Deputy will be aware that the named covered institution is not in receipt of state funding nor has it applied for participation in the NAMA programme. It operates as a commercial financial institution subject to relevant regulatory approval. It has indicated publicly that it is involved with other parties in discussing options for restructuring within the banking sector, which is an ongoing matter.

With effect from 18 January 2010, ILP restructured their organisation by way of a scheme of arrangement with shareholders to form a new group holding company the purpose of which is to maintain maximum flexibility in the group's corporate structure and also to provide financial flexibility.