Richard Bruton (Dublin North Central, Fine Gael)
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Question 112: To ask the Tánaiste and Minister for Finance if he has made a decision on raising the level of deposits protected under deposit protected schemes in view of the greater uncertainty which prevails. [16407/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I would remind the Deputy that, as I have mentioned in response to previous similar questions, the first and most robust line of defence for depositors must be a well-managed system of prudential regulation and supervision so as to try to minimise the risk that a Deposit Guarantee Scheme (DGS) needs to be activated. Recent assessments by bodies such as the IMF have confirmed that the Irish regime for financial regulation complies with best international practice.

I might also point out that the Central Bank and Financial Services Authority of Ireland has confirmed that Irish financial institutions have only very limited exposure to impaired sub-prime or related assets. Moreover, Irish banks have been solidly profitable over recent years. In these circumstances, I consider that Irish banks are well placed to cope with current uncertainty prevailing at the international level.

The Deputy will also be aware that, arising from an Ecofin Council meeting last October, a review of the EU DGS was initiated. That review is ongoing and Irish officials are participating in the review. I will, of course, consider in that context any specific changes required in the Irish DGS to ensure that savers in Ireland benefit from safeguards in line with EU best practice.