Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

Notwithstanding good progress in reducing our shareholdings in the banking system and returning funds to the Exchequer, the State remains a majority shareholder in AIB, with a 53% stake, and in Permanent TSB, with a stake of approximately 62%. It continues to be this Government’s belief that banking in the main is an activity that should be provided by the private sector and that taxpayer funds which were used to rescue the banks should be recovered and used for the benefit of the citizens of the State.

The State recently completed a share buyback programme with AIB and we continue to sell shares in AIB through a trading plan, phase 3 of which has been operational since 11 January 2023 with BofA Securities acting as the trading plan manager. Indeed, I will continue to monitor market conditions for further opportunities to reduce the State's shareholding in AIB in the period ahead.

With regard to Permanent TSB, the State is currently not selling shares in the bank and has no near-term intentions to do so with the priority being the successful and safe integration of Ulster Bank's loans, customers and staff. The retail banking review published by my Department in November 2022 considered whether the introduction of a local public banking structure would be desirable. It concluded that the credit union sector should be given the opportunity to transform into a community-based provider of universal retail banking products and services. The findings of the review are available on my Department’s website. I highlight the work that the Minister of State, Deputy Carroll MacNeill, is doing to support the development and growth of the credit union sector, including the passage of legislation. We are now seeing more mortgage activity and investment in technology within credit unions. More current accounts are being opened up by credit union members. I can elaborate on those points another time.

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