Dáil debates
Wednesday, 12 October 2011
Central Bank and Credit Institutions (Resolution) (No. 2) Bill 2011: Report and Final Stages
1:00 pm
Michael Noonan (Limerick City, Fine Gael)
I move amendment No. 23:
In page 90, between lines 42 and 43 to insert the following:
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| 46 | Section 47(1) | For "the Companies Acts, the Building Societies Act 1989 or the Credit Union Act 1997", substitute "the Companies Acts or the Building Societies Act 1989". |
| 47 | Section 50(2) | In paragraph (g), for "(S.I. No. 490 of 2009)." substitute "(S.I. No. 490 of 2009);".After paragraph (g), insert:"(h) to dispose of some of the assets or part of the undertaking of the relevant institution, subject to such terms and conditions as are specified by the Minister, where, in the opinion of the Minister, the disposal is required in order for the relevant institution concerned to achieve—(i) a ratio the subject of a requisition under section 23 of the Central Bank Act 1971,(ii) a requirement as to the composition of the assets or liabilities of the relevant institution as specified by the Bank under section 23A of that Act.". |
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This amendment will amend the Credit Institutions (Stabilisation) Act 2010 as follows. Item 46 removes the reference to the Credit Union Act 1997 in section 47(1). This reflects the fact that upon enactment of this Bill the credit unions will no longer fall within the scope of the 2010 Act. Therefore, the references to that Act become redundant.
Item 47 adds a new paragraph (h) to section 52 and makes a consequent amendment to paragraph (g). The covered banks are required to dispose of certain of their loan books to meet the loan to deposit ratio set by the Central Bank. To facilitate this process, the Minister has been provided with additional powers pursuant to this amendment to instruct the banks to dispose of assets to meet these ratios.
The issue of a requirement by the Minister pursuant to new paragraph 52(h) will allow a covered bank to take actions to meet its loan to deposit ratio without causing technical default under its contractual arrangements.
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