Dáil Éireann Debate, Tuesday - 22 January 2019
132. Deputy Pearse Doherty asked the Minister for Finance the purpose of the guidance note titled Minister for Finance’s Approval of Transfers of Banking Business under Part III of the Central Bank Act 1971, published on 7 January 2019; the way in which this note changes the current requirements; and if he will make a statement on the matter. [2852/19]
Amharc ar fhreagraI wish to clarify for the Deputy that the recent guidance note on 'Transfers of Banking Business under Part III of the Central Bank Act 1971' published by my Department does not in any way change the requirements in relation to seeking the approval of the Minister for Finance as set out in the Central Bank Act 1971 (as amended). Rather this guidance note is intended to bring clarity to this process for any Irish authorised bank considering seeking my approval as Minister to transfer their business to another authorised institution. In particular the note seeks to highlight the timelines involved in the process, and to encourage any bank considering transferring its business to engage with my Department at an early stage.
My officials must undertake an analysis of the proposed transfer and prepare a submission to me. This analysis may necessitate follow up with the bank in question, including queries on the transfer, and my officials may request written information notes, telephone calls or face-to-face meetings.
I must also consult with the Governor of the Central Bank of Ireland on any proposed transfer of banking business, so as to be fully informed of the relevant regulatory, supervisory and prudential considerations, and sufficient time must be allocated to allow me to do this.
The Statutory Instrument pertaining to the transfer of business must be drafted by the Office of the Parliamentary Counsel, and again sufficient time should be allocated.
The statute sets out a deadline that, “the Minister, after consultation with the Bank, may, not less than two months before the transfer date, either approve of or decline to approve of the scheme by order”. To allow sufficient time for the necessary processes, my Department recommends submitting the transfer proposal with a minimum of two months’ notice prior to the deadline (i.e. at least four months before the proposed transfer date). However, earlier submission is strongly advised.
Because the Central Bank does not disclose confidential information, neither I nor my officials will be aware of any proposed transfers of banking business until the proposal is submitted to me directly. Any bank considering transferring its business should engage with both my Department of Finance and the Central Bank at an early stage in the process.
I made Orders approving two transfers of banking business in 2018, both in the context of the Brexit preparations of the banks involved.
