Dáil Éireann Debate, Thursday - 13 March 2014
58. Deputy Michael McGrath asked the Minister for Finance his plans for dealing with small and medium enterprise debt held by non-Irish headquartered banks; and if he will make a statement on the matter. [12681/14]
Amharc ar fhreagraIn relation to SME debt held by non-domestic banks, two issues arise. Firstly, the core strategy of those banks in relation to the Irish banking market and secondly their plans to continue to service SME customers in the market. As the Deputy will be aware, recently Dankse Bank and ACC Bank have both indicated their intention to cease servicing the SME market and the focus at the moment is on ensuring that businesses can transfer their banking requirements to other financial institutions. It is the expectation that every effort will be made by those institutions to fully support businesses as they arrange new banking relationships with other financial institutions participating in the market.
In relation to Ulster Bank, the Deputy will be aware that following the review by the UK Treasury in Autumn 2013, RBS has reaffirmed its commitment to the Irish market. As part of that process, Treasury officials engaged with officials from my Department. RBS is currently reviewing the operations of Ulster Bank in Ireland with a view to creating a sustainable business model and on 27 February 2014, RBS reiterated its commitment to the Irish market. RBS also stated its intention to build on Ulster Bank's current position to be a compelling challenger bank to the domestic banks and focus firmly on the customer. It is good news that the bank has committed so firmly to the Irish market.
Officials in the Department of Finance have been in contact with both RBS and Ulster Bank officials and this will continue as the bank finalises its plans for the future. I also met with RBS executives to ascertain their outlook for the bank both here and in the UK.
