Brian Lenihan Jnr (Dublin West, Fianna Fail)

I am unsure that there is much tenderness in this provision because it applies to section 4. Section 4 is the only provision that creates an offence within the Bill. The offence created by the Bill is that a credit institution shall not carry on the business of a credit institution unless it maintains a deposit with the bank. Consequently, the offence is that it failed, as a credit union, to maintain a deposit with the bank. The failure of a bank to so do must be criminalised. I am not aware of such an offence ever having been committed. Clearly, a standard provision was provided to back up the prohibition in section 4(1) with a proper criminal sanction. Moreover there is provision, on indictment, for a fine not exceeding €250,000 or imprisonment at the discretion of the court. This would apply to a director, manager, secretary or any other officer of the body who committed the offence. In my view, this constitutes sufficient protection for the public in respect of this matter. While many offences may have been committed by bankers in recent years, I am unsure whether this was one of them and the prescribed penalty is adequate for the purpose.

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