Michael McGrath (Cork South Central, Fianna Fail)
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Question 74: To ask the Minister for Finance the way the €250 million allocated for each of the years 2012 and 2013 for a resolution fund for the credit union sector will be allocated; and if he will make a statement on the matter. [41025/11]

Michael Noonan (Limerick City, Fine Gael)
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The purpose of the Resolution Fund under the Central Bank and Credit Institutions (Resolution) Act, 2012 is to provide a source of funding for the resolution of financial instability in, or an imminent serious threat to the financial stability of, an authorised credit institution. In particular the Resolution fund may be used for:

· the payment of financial incentives for transfers,

· providing capital for a bridge bank,

· meeting the expenses of the Central Bank incurred when discharging functions under the Act, and

· making certain payments under the Act, for example, the payment of expenses to an assessor appointed under the Act.

This Act applies to credit unions as well as other credit institutions such as banks and building societies.

Payments will be made on a case by case basis according to the resolution actions undertaken by the Central Bank under the Act. The Central Bank is responsible for managing and administering the resolution fund.