Results 11,721-11,740 of 27,019 for speaker:Michael Noonan

Written Answers — Department of Finance: Bank Guarantee Scheme Administration (3 Jul 2013)

Michael Noonan: The Deposit Guarantee Scheme (DGS) protects depositors in the event of a bank, building society or credit union authorised by the Central Bank of Ireland being unable to repay deposits. Deposits up to €100,000 per person per institution are protected. The DGS is administered by the Central Bank of Ireland and is funded by the credit institutions covered by the scheme. Each...

Written Answers — Department of Finance: Economic Data (3 Jul 2013)

Michael Noonan: The figures published last week by the CSO show that GDP contracted by -0.6 per cent quarter-on-quarter in the first quarter of 2013 and by -0.9 per cent year-on-year. Almost all components of domestic demand contracted in year-on-year terms in the first quarter. Private consumption was down -1.6 per cent, partly due to low car sales. Investment fell -19.8 per cent as there were fewer...

Written Answers — Department of Finance: Bond Redemption (3 Jul 2013)

Michael Noonan: I have been advised by the Central Bank that the portfolio of Government bonds now held by the Bank following the liquidation of IBRC will be sold as soon as possible, provided conditions of financial stability permit. The Bank has, however, undertaken that a minimum amount of bonds will be sold in accordance with the following schedule: to end 2014 (€0.5bn), 2015-2018 (€0.5bn...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Review of ECOFIN Matters under Irish EU Presidency: Discussion (3 Jul 2013)

Michael Noonan: We are now at the end of the 7th Irish Presidency of the European Union. I am happy to report to this committee that it has, in my view, been a very successful one for the Department of Finance and it has, in many respects, exceeded our expectations when we were planning the Presidency in 2012. I wish to give the committee an overview of the achievements of the Presidency in the past six...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Review of ECOFIN Matters under Irish EU Presidency: Discussion (3 Jul 2013)

Michael Noonan: I thank Deputy Donnelly for the good wishes and congratulations he extended to me and my officials, who are well worthy of the congratulations they received both here and in Brussels. The bank resolution mechanism is complex because it is a new concept and new terms are being used. I will ask my officials to provide the Deputy with a user-friendly paper which breaks down the various ideas....

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Review of ECOFIN Matters under Irish EU Presidency: Discussion (3 Jul 2013)

Michael Noonan: They will. The legal link and the pari passu link between senior bondholders and depositors has been broken and all deposits will move to a lower level in the hierarchy of bail-in assets, as we discussed previously, but within that hierarchy the position has been nuanced and refined more and a differentiation has been made between natural persons with big deposits, over €100,000, and...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Review of ECOFIN Matters under Irish EU Presidency: Discussion (3 Jul 2013)

Michael Noonan: The Deputy can work the examples. I again thank him for his complimentary remarks.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Review of ECOFIN Matters under Irish EU Presidency: Discussion (3 Jul 2013)

Michael Noonan: The hierarchy is equity, subordinate bondholders and senior bondholders. If one has to go further for additional assets, one goes to the depositors, for whom €100,000 is guaranteed. On the same line preference is given to larger deposits of natural persons and SMEs. What is part of the bail-in at that point is corporate deposits.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Review of ECOFIN Matters under Irish EU Presidency: Discussion (3 Jul 2013)

Michael Noonan: Yes.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Review of ECOFIN Matters under Irish EU Presidency: Discussion (3 Jul 2013)

Michael Noonan: Both. Often in the European Union, once a mechanism is put in place, it can be used informally. If bail-in becomes the new rule, it will be very hard for a Government to go back to a set of taxpayers and say it wants their money to bail out an institute. I do not think countries will have the legal arrangements in place and everything will be done until about 2016. There will be a gap...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Review of ECOFIN Matters under Irish EU Presidency: Discussion (3 Jul 2013)

Michael Noonan: We have our own resolution legislation, but, yes, there will be domestic legislation also. It will be transposed from the EU directive.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Review of ECOFIN Matters under Irish EU Presidency: Discussion (3 Jul 2013)

Michael Noonan: It builds in to the directive the manner in which the ESM can be accessed. One must think of the European Union. There are 18 countries in the eurozone. The countries that are not in it have banking systems that lend and borrow in the eurozone and right across the European Union. There are banks that work only in their own sovereign area, banks that work in the eurozone and banks that...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Review of ECOFIN Matters under Irish EU Presidency: Discussion (3 Jul 2013)

Michael Noonan: There will be a common rule book and common protocols which, in the first instance, will be directed from Frankfurt. There will be a common set of rules and protocols which, in terms of regulation, will apply to all banks. Some banks will be regulated by the domestic regulator, while others will be regulated directly by the European regulator. If I recall it correctly - I will check with...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Review of ECOFIN Matters under Irish EU Presidency: Discussion (3 Jul 2013)

Michael Noonan: In a country such as Germany obviously there will be a minimum of three big international banks, but it will go beyond this.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Review of ECOFIN Matters under Irish EU Presidency: Discussion (3 Jul 2013)

Michael Noonan: All functions not within category 1 will be delegated to the domestic regulatory authorities, but they will have to regulate by the same set of rules and protocols. Also, a fail-safe mechanism provides that if the authorities in Frankfurt are worried at any point about a particular bank, they can override the domestic regulator and come in and take direct control of the regulation.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Review of ECOFIN Matters under Irish EU Presidency: Discussion (3 Jul 2013)

Michael Noonan: The three main banks in all countries will be directly supervised, but the ECB will obviously build a relationship with local banks also. How it will recruit and where it will establish the regulatory personnel are not clear. We do not know whether people will fly in from Frankfurt or whether a cohort of people will be housed in our Central Bank. I am not sure how the logistics will work,...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Review of ECOFIN Matters under Irish EU Presidency: Discussion (3 Jul 2013)

Michael Noonan: The authorities in Frankfurt can supervise through the local central banks, but the authorities will have the legal mandate and will direct how it should be done. They have the freedom to use local personnel when doing local regulatory work. However, the local personnel will not be the regulator.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Review of ECOFIN Matters under Irish EU Presidency: Discussion (3 Jul 2013)

Michael Noonan: Yes.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Review of ECOFIN Matters under Irish EU Presidency: Discussion (3 Jul 2013)

Michael Noonan: From the depositor point of view, we hope there will be no changes, because the €100,000 would be sacrosanct. It is sacrosanct here already, so this would mean no change. What would be organised in Europe is how this will be underpinned financially. We are talking about the size of the European fund underpinning the guarantee and the level of contribution from the financial...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Review of ECOFIN Matters under Irish EU Presidency: Discussion (3 Jul 2013)

Michael Noonan: The detail has not been worked out yet. We have dealt with the CRD IV, which concerns the capital requirements and the matter of bankers' bonuses, which is attached to that. All of the work regarding supervision is now completed and we have the detail of that. The resolution directive is completed and we have the detail on that. Then, in principle, there is an agreement that there will be...