Dáil Éireann Debate, Wednesday - 10 March 2010
57 Deputy Catherine Byrne asked the Minister for Finance the way it is proposed to fund any recapitalisation of the banks after the loan transfer to the National Asset Management Agency, which it falls upon the State to provide. [11569/10]
Amharc ar fhreagraI indicated last September that, following the transfer of eligible bank loans to NAMA, it is likely that institutions will require additional capital and that each institution should explore all available options, both internal and external, for raising such capital. However, I also stated that, to the extent that the institutions are not in a position to raise sufficient capital from such sources, the Government remains committed, consistent with EU rules, to providing relevant banks and building societies with an appropriate level of capital to enable them to continue to meet their regulatory requirements.
In light of its responsibilities for the implementation of the Capital Requirements Directive, the Financial Regulator is currently assessing the capital requirements arising for those credit institutions participating in NAMA to ensure that the banking system in Ireland meets appropriate regulatory standards and market expectations. In general terms, the impact of any future bank recapitalisation on the Exchequer, the National Pensions Reserve Fund and the General Government Balance will depend on the scale and source of the recapitalisation funds and the basis on which capital is provided and, therefore, cannot be specified at this point.
