Dáil Éireann Debate, Wednesday - 20 June 2012
49 Deputy Michael McGrath asked the Minister for Finance if he envisages the covered banks will be able to meet their wholesale funding maturity needs in the next two years from the open market; and if he will make a statement on the matter. [30039/12]
Amharc ar fhreagraI have been informed by the covered banks that their wholesale funding maturity needs should be met as follows in the next two years:
IBRC:
IBRC is a non-pillar bank that had the majority of its deposits transferred to AIB in 2011 by Ministerial order. As a result, IBRC is heavily reliant on official sources for its funding. Any wholesale maturities that come due are met from either the Bank's existing resources or drawings on official sources.
PTSB:
PTSB expect to meet maturity needs from deposit growth and the benefits of restructuring the balance sheet. PTSB will continue to review opportunities for secured debt issuance.
AIB:
AIB has a planned term issuance schedule that will refinance maturing wholesale debt maturities out to the end of 2014, including a combination of Secured Funding and Government Guaranteed bond issues with unguaranteed issuances restarting from 2014 onwards. The extent of AIB's wholesale funding refinancing requirements will be influenced by the level of customer deposit funding and deleveraging activity. These are on track. Continued stability in their customer deposit franchise would allow the bank to meet its wholesale maturity needs in the next two years even if it could not access wholesale markets by utilising its unencumbered liquidity buffer.
BOI:
In the case of BOI, a material reduction in the wholesale funding requirement to the end of 2013 is expected consistent with planned deleveraging and the achievement of a loan to deposit ratio of 122.5% by December 2013. Maturing open market term funding is more than offset by the planned reduction in the overall wholesale funding requirement, thus limiting the financing requirement from the open market.
