Results 6,321-6,340 of 16,537 for speaker:Brian Lenihan Jnr

Financial Services (Deposit Guarantee Scheme) Bill 2009 - Committee Stage (Resumed) and Remaining Stages (17 Jun 2009)

Brian Lenihan Jnr: It is a good example because it was not a member of the eurozone. The more direct and immediate competition here has been provided by institutions in member states, in respect of deposits and risky lending. Leaving aside Anglo Irish Bank because it was not a domestic mortgage lender, although I understand why the Deputy likes to dwell on it, when one looks at the history of events in the...

Financial Services (Deposit Guarantee Scheme) Bill 2009 - Committee Stage (Resumed) and Remaining Stages (17 Jun 2009)

Brian Lenihan Jnr: That was just in the case of the mortgage market. I qualified my remarks to refer to the mortgage market.

Financial Services (Deposit Guarantee Scheme) Bill 2009 - Committee Stage (Resumed) and Remaining Stages (17 Jun 2009)

Brian Lenihan Jnr: This is the first time the credit union movement has been brought into the deposit guarantee.

Financial Services (Deposit Guarantee Scheme) Bill 2009 - Committee Stage (Resumed) and Remaining Stages (17 Jun 2009)

Brian Lenihan Jnr: That is right because there is a level playing field. In that case there must be a level playing field all round so there must be some element of contribution. I will discuss this with the credit union movement and if the movement demonstrated a low element of risk to the Central Bank, that could be reflected in the appropriate levies. I have already made it clear that I am sensitive to...

Financial Services (Deposit Guarantee Scheme) Bill 2009 - Committee Stage (Resumed) and Remaining Stages (17 Jun 2009)

Brian Lenihan Jnr: Deputy O'Donnell should remember that stabilisation within the credit union movement has been a divisive subject. The credit unions are not of one mind on this matter. I must ensure that those who deposit moneys with credit unions are secure.

Financial Services (Deposit Guarantee Scheme) Bill 2009 - Committee Stage (Resumed) and Remaining Stages (17 Jun 2009)

Brian Lenihan Jnr: I will examine that.

Financial Services (Deposit Guarantee Scheme) Bill 2009 - Committee Stage (Resumed) and Remaining Stages (17 Jun 2009)

Brian Lenihan Jnr: I mentioned this in the course of the debate and did not clarify fully what was envisaged. The minimum contribution is currently €25,400, but I do not propose to apply the minimum to credit unions. If the minimum were to be applied, smaller credit unions would have to pay a disproportionate amount if I imposed the 0.2% rate on them.

Financial Services (Deposit Guarantee Scheme) Bill 2009 - Committee Stage (Resumed) and Remaining Stages (17 Jun 2009)

Brian Lenihan Jnr: I believe that is correct. I will accept the Deputy's figure for the purpose of the argument.

Financial Services (Deposit Guarantee Scheme) Bill 2009 - Committee Stage (Resumed) and Remaining Stages (17 Jun 2009)

Brian Lenihan Jnr: A small credit union will not be hit with a minimum. It is my intention with regard to the regulations I will draw up not to apply the minimum to credit unions, so smaller credit unions will not have to pay the minimum figure, which would exceed the percentage contribution otherwise.

Financial Services (Deposit Guarantee Scheme) Bill 2009 - Committee Stage (Resumed) and Remaining Stages (17 Jun 2009)

Brian Lenihan Jnr: Yes, or there will be a separate provision within the regulations dealing with the issue. It is important for credit unions, with which we are engaged in a very intensive discussion on the subject of general stabilisation. One would need the skills of a Kofi Annan to fully resolve the issue.

Financial Services (Deposit Guarantee Scheme) Bill 2009 - Committee Stage (Resumed) and Remaining Stages (17 Jun 2009)

Brian Lenihan Jnr: There is a registrar of credit unions under the IFSRA legislation and it is his function to maintain the invigilation which Deputy Bruton referred to. In a sense, this legislation deals with payments on foot of the requirement. There is the wider question of stabilisation and traditionally the league has supported a position where it manages the stabilisation fund. That is a very strong...

Financial Services (Deposit Guarantee Scheme) Bill 2009 - Committee Stage (Resumed) and Remaining Stages (17 Jun 2009)

Brian Lenihan Jnr: We discussed issues related to the section.

Financial Services (Deposit Guarantee Scheme) Bill 2009 - Committee Stage (Resumed) and Remaining Stages (17 Jun 2009)

Brian Lenihan Jnr: That is what we were discussing in the Deputy's absence. There is a minimum charge in the existing regulations which will not be applied to credit unions, so a smaller credit union will simply pay the proportionate amount rather than the minimum amount. That was the point raised by Deputy Burton earlier. The section permits the payment of aggregate contributions on behalf of a group of...

Financial Services (Deposit Guarantee Scheme) Bill 2009 - Committee Stage (Resumed) and Remaining Stages (17 Jun 2009)

Brian Lenihan Jnr: This will be determined by regulations. Credit unions, like other credit institutions, at this stage will be required to pay 0.2% of total deposits. However, they will be exempt from the minimum payment deposit provision which is currently set at €25,400, as that could have a disproportionate impact on smaller credit unions. The initial intent related to a 0.2% rate and as I indicated in...

Financial Services (Deposit Guarantee Scheme) Bill 2009 - Committee Stage (Resumed) and Remaining Stages (17 Jun 2009)

Brian Lenihan Jnr: It will not apply to individual credit unions. It is not my intention to do that.

Financial Services (Deposit Guarantee Scheme) Bill 2009 - Committee Stage (Resumed) and Remaining Stages (17 Jun 2009)

Brian Lenihan Jnr: Precisely.

Financial Services (Deposit Guarantee Scheme) Bill 2009 - Committee Stage (Resumed) and Remaining Stages (17 Jun 2009)

Brian Lenihan Jnr: I move amendment No. 1: In page 6, lines 11 to 21, to delete subsection (1) and substitute the following: "(1) If the Bank charges on the deposit protection account any payment out of the Bank's own funds in accordance with the Deposit Guarantee Regulations, the amount of the payment shall, with the approval of the Minister, be repaid to the Bank out of the Central Fund or the growing...

Financial Services (Deposit Guarantee Scheme) Bill 2009 - Committee Stage (Resumed) and Remaining Stages (17 Jun 2009)

Brian Lenihan Jnr: The power would have to be determined by a future Minister for Finance after consulting with the Government. He would have wide powers and he could propose to levy the entire system or could make it more specific to a particular institution. The fundamental procedure when dealing with a run on a bank is the injection of liquidity back into it by a central bank. As Ireland is in the...

Financial Services (Deposit Guarantee Scheme) Bill 2009 - Committee Stage (Resumed) and Remaining Stages (17 Jun 2009)

Brian Lenihan Jnr: Section 4(4) refers to a wide range of matters which the Central Bank can use to advise the Minister. If an institution were insolvent, the Minister would not be in a position to impose a levy on it. It would be the other institutions that would have to carry it. I was referring to the association of the other institutions with the degree of risk engaged upon by the errant institution....

Financial Services (Deposit Guarantee Scheme) Bill 2009: Committee Stage (Resumed) (17 Jun 2009)

Brian Lenihan Jnr: I am in possession and a number of points were made in speaking to section 1 by a number of Deputies. I was in the course of beginning to deal with them. I had outlined the statistical data available to the Central Bank with regard to the estimate of the sums covered by this legislation. On the more general question raised by Deputy Burton about the sums covered by the guarantee under the...