Dáil debates

Thursday, 10 July 2014

Strategic Banking Corporation Bill 2014: Committee and Remaining Stages

 

3:00 pm

Photo of Peter MathewsPeter Mathews (Dublin South, Independent) | Oireachtas source

The title, the Strategic Banking Corporation of Ireland Bill 2014, suggests it is the arrival of an institution that will endure. Ownership and control of the institution will lie with the Minister on behalf of the State, which is the people of Ireland. That is the impression given by the framing of the legislation. The funding for the institution will come significantly from KfW and it could happen that, in the course of business and after a few years, as a serious creditor to the institution KfW could exert leverage to take over or convert the funds it has lent to the institution for controlling shares. An institution that will have a broad spectrum mandate and be predominantly focused on SME financing in the short-term, medium-term or long-term, for fixed assets, working capital or whatever and taking on housing finance, if deemed appropriate, or other objectives and if difficulties arise in the conduct of the business, the creditors may end up having a significant influence to control, to take over, to liquidate or partially own the institution. I do not know whether that discussion has been held in the Department with advisers but it is important.

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