Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I thank Senator Reilly for her amendment and her contribution. There is nothing in the legislation precluding the Strategic Banking Corporation of Ireland from applying for a banking licence if it deems it necessary in the future. It would seem therefore that our policy intentions are aligned on this matter.

The SBCI’s initial focus will be to use the successful on-lending model. The company can bring about benefits to the economy by being established as proposed in the legislation and can expand its operations to other areas in the months and years to come.

At present, seeking a banking licence would be an unnecessary burden on the new company, through increased expense and administration, that would not add value to its initial offering to SMEs. The corporation will not conduct banking business at the start of its operations nor do we currently plan for it to conduct any banking business within the short term. If, in future, its interests require a banking licence such as for taking in deposits to fund lending, the legislation is sufficiently broad to facilitate this anticipated growth of scope.

It would therefore need to be subject to the full Central Bank licensing regime and engage fully with the relevant authorities before commencing such operations. The amendment is not necessary and, consequently, I am not accepting it.