Peter Mathews (Dublin South, Fine Gael) | Oireachtas source

I ask Mr. Sheridan and his colleagues to remind the banks openly that this is the case. They should announce it in print, on radio and television so that the customers of the banks can take note of it. They should not feel deferential or pushed around when they are negotiating honestly and openly on what they are capable of repaying from their existing incomes and revenues.

In respect of the charges that have increased by 23%, the banks annual accounts report their income, including gross profit. Their gross profit is net income on the interest they receive minus the interest they pay out. Do these charges fall within that net interest income? If they do, I would like to know the amounts. If, for example, 50% of the net income comes from charges what sort of behind-the-curtains accounting is being done for this 23% uplift?

For six years the industry and every bank had loans to deposits of 150%, were not engaged in fraction reserving and were endangering the deposits of their customers, which was evidenced by the deposits outflow of €42 billion in six months in 2009 from the six Irish institutions. This illustrates their dereliction from their professional duties. The eurosystem should sit up and pay attention also. They are creditors to our banks and should be participating in their recapitalisation, which is inevitable. One wonders if the reason Mr. Elderfield has indicated his intention to leave his position only three years into his contract is he suspects that further capitalisation of the banks will be required. The PCAR of March 2010 fell short. I met Mr. Elderfield in his office to tell him so, which was prior to my getting involved in politics. It fell short again in March 2011, at which time I asked my colleagues in government not to proceed with the recapitalisation of the banks from the National Pensions Reserve Fund. I said at that time that this should be done by creditor participation from the eurosystem and that Europeans should appreciate that what was done, in lending ELA and ECB money to our six banks to redeem in full not less than €75 billion of bondholders, was wrong.

I apologise but I must leave soon to attend another meeting.