Brian Lenihan Jnr (Dublin West, Fianna Fail)

First, as I stated in my reply, my understanding is that the bankers in question expressed this view. I certainly did not make myself a party to their view. I do not agree with their view, as stated to the committee, and that is why the legislation confers power in the Minister for Finance to issue guidelines and to devise appropriate appeal mechanisms on the giving of credit.

The banks, as I indicated clearly in the course of the NAMA, and I reiterate here today, must ensure that there is an adequate flow of credit to the economy. There are very difficult questions to determine on whether a particular business may be viable for credit purposes or not, but I am concerned about the total volume of credit in the banking system and it is my intention to ensure that the powers conferred upon me under the legislation are exercised to that end.

The guidelines have been the subject of discussions between my officials and the relevant financial institutions. I understand the particular banker to whom Deputy Bruton is referring is the retiring chief executive of the Allied Irish Bank.

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