Dáil Éireann Debate, Tuesday - 31 May 2016
256. Deputy Michael McGrath asked the Minister for Finance the circumstance in which a bank is required to consult with his Department when it is proposing a disposal of a loan or loans; if the disclosure requirements distinguish between residential mortgage, buy to let and commercial loans; and if he will make a statement on the matter. [13434/16]
Amharc ar fhreagraThe only banks which may be required to consult with my Department in the event of a large asset disposal are AIB and Permanent TSB. These banks may be obliged to consult with me under the terms set out in their respective Relationship Framework Agreements. The Relationship Framework Agreements govern what has been designed to be an arms-length relationship between the institutions, who operate independently on a commercial basis, and my Department.
Under the terms of the Relationship Framework Agreements, AIB and PTSB are required to consult with me in relation to "any material acquisitions, disposals, investments, realisations, reorganisations, restructurings or other transactions". A material matter is defined in the documents as "an acquisition, investment or disposal other than in the ordinary course of business and the total purchase price, investment or proceeds" that is likely to exceed €100 million in the case of AIB, or likely to exceed €50 million in the case of PTSB. No distinction is made in the agreements between different types of assets or loans.
The full texts of the Relationship Framework Agreements for AIB and Permanent TSB can be found at:
AIB: http://finance.gov.ie/sites/default/files/Allied-Irish-Banks1.pdf
PTSB: http://finance.gov.ie/sites/default/files/Relationship%20Frameworks%20for%20the%20Irish%20Banks%20Irish%20Life%20and%20Permanent.pdf
