Paul Connaughton Snr (Galway East, Fine Gael)
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Question 40: To ask the Tánaiste and Minister for Finance the contingency plans in place to deal with any shock within the financial system here. [15659/08]

Bernard Durkan (Kildare North, Fine Gael)
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Question 81: To ask the Tánaiste and Minister for Finance the action required to offset the effects of the international financial crisis here; and if he will make a statement on the matter. [15633/08]

Bernard Durkan (Kildare North, Fine Gael)
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Question 90: To ask the Tánaiste and Minister for Finance if he has taken steps to minimise the effects of the international financial crisis here; and if he will make a statement on the matter. [15849/08]

Bernard Durkan (Kildare North, Fine Gael)
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Question 91: To ask the Tánaiste and Minister for Finance if the banking and financial services sectors here are sufficiently protected against fluctuations arising from the international banking crisis; and if he will make a statement on the matter. [15850/08]

Kieran O'Donnell (Limerick East, Fine Gael)
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Question 107: To ask the Tánaiste and Minister for Finance the measures, in view of the current global credit squeeze crisis, he proposes to implement to ensure that the banking sector here is sufficiently robust to deal with same; and if he will make a statement on the matter. [15916/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 40, 81, 90, 91 and 107 together.

The Irish financial system has been positively assessed by the Central Bank and Financial Services Authority of Ireland in its Financial Stability Report and more recently by the OECD. The OECD's Economic Survey of Ireland, 2008 points out that Irish banks entered the current period of international financial turmoil in a very strong position and that they, therefore, have considerable capacity to respond to unexpected developments. The OECD noted that sustained economic growth has ensured that Irish banks are well positioned to deal with recent market developments. The OECD welcomed the findings that Irish banks have little exposure to the sub-prime market, hedge funds and the private equity sector.

I would remind Deputies that the most important safeguard of financial stability is the existence and effective operation of the financial regulatory and supervisory regime. In Ireland the Central Bank and Financial Services Authority of Ireland integrates within a single institutional structure both the supervision of individual financial firms by the Financial Regulator and the monitoring of overall financial stability, which is the independent responsibility of the Governor of the Central Bank. The roles are complementary and this structure yields significant advantages in terms of monitoring and maintaining financial stability in ensuring seamless, effective and timely co-ordination of these two key functions. It is important to emphasise that the framework for financial regulation here is shaped by a detailed and comprehensive template which applies across the EU and that our approach has been positively assessed by both the IMF and OECD.

EU Finance Ministers have adopted an extensive road map of actions incorporating a work programme running to the end of 2008 aimed at putting in place a comprehensive response to developments in financial markets. This road map includes reviewing along with the EU's international partners how to further improve transparency of complex financial instruments, valuation standards, the prudential framework, risk management and supervision and market functioning including the role of ratings agencies. Ecofin Ministers and Central Bank Governors have recently agreed an extended Memorandum of Understanding on financial stability contingency planning between financial supervisors, central banks and finance ministries that incorporates common principles and practical guidelines for cross-border cooperation. This EU framework facilitates timely information exchange and sharing of views and assessments between my Department and the CBFSAI on issues related to financial stability.