Dáil Éireann Debate, Tuesday - 19 November 2013
216. Deputy Luke 'Ming' Flanagan asked the Minister for Finance if the banking licence held by the ACC Bank will be handed in to the Central Bank when the bank closes; if this is the only option being examined by his Department; if he will consider selling off the bank, including its licence, brand and its outlets; and if he will make a statement on the matter. [49506/13]
Amharc ar fhreagraACC Bank is a subsidiary of the Rabobank Group based in the Netherlands which has taken the commercial decision, as a private enterprise, to return ACC’s banking licence to the Central Bank. The Central Bank does not envisage that this will occur until the second half of 2014. As Minister for Finance, the issue of selling the bank does not arise because it is owned by Rabobank Group, not the Irish state.
ACC’s situation must be considered against a backdrop of a comprehensive programme of bank recapitalisation and restructuring that has been underway to change the future banking landscape in Ireland and abroad. While it is disappointing that ACC have taken this decision one of the key features of banking strategy in the financial crisis has been the retrenchment to national borders.
As the Deputy will be aware, the Government has decided to establish the Ireland Strategic Investment Fund (ISIF) which will absorb the National Pensions Reserve Fund (NPRF).
Using the Ireland Strategic Investment Fund, we will maximise our resources to enhance growth in the Irish economy and improve key infrastructure to maintain Ireland's attractiveness as a place to do business and to create employment. Officials of my Department are currently preparing the necessary legislation which I anticipate will be enacted early next year.
Already, in the lifetime of this Government, the NPRF has established funds that support both strategic projects and a number that support SME financing.
The Government has made a commitment to improve funding mechanisms for the real economy, including access to finance for Irish SMEs. As the Taoiseach announced on 14 November in order to advance this commitment, government officials led by the Department of Finance will be engaging with the German authorities to leverage KFW expertise and resources to support credit availability for Irish SMEs.
