Written answers

Thursday, 25 September 2008

Department of Finance

Financial Services Regulation

5:00 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 18: To ask the Minister for Finance if he is satisfied with the level of deposit protection for savers in Irish financial institutions. [31447/08]

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
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Question 60: To ask the Minister for Finance his views on introducing, with immediate effect, legislation to increase protection of cash deposit holders from its low level of 90% on the first €22,222 per depositor per financial institution; and if he will make a statement on the matter. [31320/08]

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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Question 87: To ask the Minister for Finance if he will support a matter (details supplied). [31660/08]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 18, 60 and 87 together.

As I announced on 20 September 2008, the Government has decided to increase the statutory limit for the Deposit Guarantee Scheme for banks and building societies from €20,000 to €100,000 per depositor per institution. The cover will apply to 100% of each individual's aggregate deposits up to the prescribed limit per banking institution. This guarantee level will also apply to credit union savers. Branches of foreign institutions authorised in the European Economic Area (EEA) and operating in Ireland are entitled to benefit from the enhanced guarantee. My Department is currently preparing legislation to give statutory effect to this increase from the date of my announcement. The level of protection available for deposits in Irish financial institutions is now amongst the highest in the European Union.

The Government remains confident in the strength and resilience of the Irish financial system and is committed to maintaining its ongoing stability. Notwithstanding this, I believe that now is an appropriate time to underline this commitment by enhancing the level of protection available to depositors so as to ensure all deposits in Irish financial institutions are safe.

The increased protection now available to Irish depositors is without prejudice to possible enhancements to the EU Deposit Guarantee Directive. A review of the Directive was mandated by the ECOFIN Council meeting in October 2007 and Ireland is actively participating in this review. Consideration is being given to the level of savings guarantee as well as wider policy areas such as improving the speed of payouts, depositor information and cross-border interoperability. Any further changes required in the Irish Deposit Guarantee Scheme will be implemented to ensure that savers in Ireland benefit from safeguards in line with EU best practice.

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