Dáil Éireann Debate, Tuesday - 14 November 2017
104. Deputy Pearse Doherty asked the Minister for Finance the knowledge his office had of the existence of a company (details supplied) since a bank was nationalised; the oversight applied to this branch of the bank; and if he will make a statement on the matter. [47621/17]
Amharc ar fhreagraThe Deputy is aware that the Minister for Finance has no direct function in strategic or operational decisions made by the banks in which the State is a shareholder. Decisions in this regard are the responsibility of the board and management of each institution, under the supervision of their regulator and equivalent authorities in the jurisdictions relevant to their operations.
The Minister must ensure that the bank is run on a commercial and independent basis and in this regard a relationship framework has been specified that defines the nature of the relationship between the Minister for Finance and the bank. These frameworks can be found on the Department of Finance website.
In carrying out its role in monitoring the performance of the banks in which we have a shareholding, officials in my Department meet the senior executives of each of the banks on a monthly basis and have access to monthly board papers.
AIB have advised me that post nationalisation of the Bank on the 23rd of December 2010 the businesses continued to be regulated by the Isle of Man Financial Services Authority and the Jersey Financial Services Commission and was governed by an independent Board in line with Group policy.
AIB have commented that:
"Arising from the recapitalisation and restructuring of AIB, and the European Commission decision on State Aid, it was decided to wind down AIB ISL Limited and AIB CI Limited in 2012. They ceased operations on 31st December 2013.
As a result, the banking licence of both companies was terminated and the administration of both, which is a legal and regulatory requirement as part of the orderly wind down of the banking operations, was migrated to and continues to be carried out by two companies, Estera Trust (Isle of Man) Limited and Estera Trust (Jersey) Limited trading as Estera."
