Dáil Éireann Debate, Wednesday - 23 May 2012
15 Deputy Mary Lou McDonald asked the Minister for Finance his views on whether the proposal in the programme for Government for a bank levy to be applied once the banking sector began functioning again will be applied in the lifetime of this Government; and the type of levy he envisions being applied. [25632/12]
Amharc ar fhreagraThe Government remains committed to the objective in the Programme for Government to introduce a bank levy, and is working to ensure this is met during the lifetime of this Government. The Central Bank and Credit Institutions (Resolution) Act 2011 provides for the introduction of such a levy on authorised credit institutions, to be paid into a bank resolution fund. The Act provides that all authorised credit institutions will be levied at a rate prescribed in or to be calculated in accordance with regulations made by the Minister under section 15 of the Act.
My Department is currently working on the formulation of regulations to introduce the levy. In making these regulations the Minister for Finance is required by the 2011 Act to have regard for the requirement to balance the need for the Fund to grow to an effective size with the need for the rate of contribution to be consistent with maintaining the commercial viability of credit institutions and also bearing in mind the difficulties facing the overall sector. Under the terms of the EU/IMF Programme of Financial Support for Ireland the regulations to introduce the Resolution Fund levy on credit institutions will be approved by end September 2012. Final confirmation of the format of the Regulations will be subject to further consultation with the Governor of the Central Bank and to the extent they relate to Credit Unions with the Credit Union Advisory Committee.
