Dáil Éireann Debate, Tuesday - 28 February 2017
199. Deputy Joan Burton asked the Minister for Finance if he has ceased appointing new public interest directors to the banks; the reform of the procedures for the appointment of bank directors by the State that is currently being considered; and if he will make a statement on the matter. [9939/17]
Amharc ar fhreagraIn the Programme for a Partnership Government ('PPG') the Government has committed to, "Cease to appoint new Public Interest Directors to the banks, and reform the procedures for the appointment of bank directors by the State, with a view to increasing transparency in the process".
As the Deputy will be aware, the rights for the State to appoint public interest directors to the boards of the Covered Institutions were derived from the terms of the guarantee schemes introduced in 2008 and last for the period of the guarantee. The last of the guaranteed liabilities are due to mature between now and Spring 2018 and as such I do not expect to make any new appointments of Public Interest Directors to the board of the banks. Going forward however the State will have the ability to appoint directors to the banks in which it has large equity ownership positions. So in line with the commitment in the PPG, my officials have commenced a process to develop new procedures for any future appointments to bank boards.
Any new appointment procedure for bank directors needs to have due regard to the distinct differences which exist relative to appointments to State boards. These include the fact that the State is not the only shareholder in these banks, the requirements of the Central Bank/SSM Fitness and Probity Regime and the requirement to have a broad set of expertise relevant to large regulated entities in an ever more complex regulatory environment.
