Dáil Éireann Debate, Wednesday - 24 February 2021
228. Deputy Pearse Doherty asked the Minister for Finance if he has considered the establishment of a third force within the banking market to compete with banks (details supplied); his views on the ability of another bank to play that role; and the consequences that may have for the Exchequer. [10536/21]
Amharc ar fhreagraAs the Deputy will be aware, the NatWest Group announced its 2020 Full Year results on Friday, 19th February. As widely expected, NatWest confirmed that it intends withdrawing from the banking sector in the Republic of Ireland and has begun the process of winding down its ROI Ulster Bank business.
As part of this process, NatWest confirmed that it is in negotiations with AIB in relation to the sale of a portfolio of performing commercial loans estimated to be worth approximately €4bn. NatWest and AIB have signed a Memorandum of Understanding in this regard. Ulster Bank staff wholly or mainly assigned to this loan book may transfer to AIB in line with the Memorandum of Understanding. NatWest also confirmed that it was in negotiation with Permanent TSB in relation to certain retail and SME assets, liabilities and operations.
If a successful proposal emerges from the negotiations between NatWest and AIB and/or NatWest and PTSB, that requires the Government’s backing as shareholder, given the likely monetary size off a transaction, and the public interest, I would anticipate that any transaction involving PTSB or AIB, would require consultation with me in line with the Relationship Frameworks. It is important to note the consultation process gives me the opportunity to express my views, but I have no right of veto.
Both sets of negotiations are at an early stage. The potential consequences for the Exchequer cannot be considered until after the negotiations have concluded. If a successful proposal emerges from these discussions which is in the best interest of the economy, consumers, SMEs and the wider banking sector, I anticipate that I will be supportive in this regard.
