Kieran O'Donnell (Limerick East, Fine Gael)
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Question 29: To ask the Minister for Finance the measures he has taken in conjunction with the Governor of the Central Bank and the Financial Regulator to satisfy himself as to the liquidity, solvency and robustness of the Irish banking, credit unions and financial services sectors; and the crisis management plan and procedures that are in place for these sectors. [31445/08]

Pat Breen (Clare, Fine Gael)
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Question 56: To ask the Minister for Finance if he has had discussions with the banks or the Central Bank and the Irish Financial Services Regulatory Authority regarding the robustness of the Irish financial sector; and if he will make a statement on the matter. [31456/08]

Willie Penrose (Longford-Westmeath, Labour)
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Question 63: To ask the Minister for Finance his views on the solvency of Irish banks and the general stability of the Irish banking system; his views on whether the Irish banks are over-exposed to risky lending for speculative land purchases; if he will provide details of any domestic finance guarantee or liquidity extension package aimed at Irish banks which is under consideration or negotiation in his Department or in conjunction with Irish banks or banking organisations; and if he will make a statement on the matter. [31321/08]

Róisín Shortall (Dublin North West, Labour)
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Question 70: To ask the Minister for Finance his views on whether any Irish bank is too big to fail; and if he will make a statement on the matter. [31338/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 29, 56, 63 and 70 together.

Maintenance of the overall stability of the Irish financial system is a central priority of Government. Since August 2007 the international financial system has been affected by unprecedented turmoil and dislocation. Credit markets which are pivotal to meeting the medium-term funding needs of the financial system have effectively closed since August 2007. Inter-bank lending rates for shorter maturities have increased very significantly increasing the cost of finance to financial institutions. Difficulties created by impairments of sub-prime securities have adversely impacted on the European and particularly US financial systems as demonstrated by recent developments in the US. This has led to major uncertainty for the global financial system.

The prompt actions by international central banks, including the European Central Bank, to provide major injections of liquidity have contributed to greater stability in financial markets internationally, though they continue to remain subject to significant uncertainties. Agreement on the extensive and far-reaching plans announced recently by the US authorities should help to stabilise financial markets and rebuild confidence in the international financial system.

Ireland as a small, highly open economy with a significant financial sector closely integrated in the international financial system cannot be immune from these developments. The Government has, therefore, been very active in supporting public confidence in the safety of deposits and the stability of the financial system overall. I welcome the Deputy's support for my announcement on 20 September last that the Government had 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 and that the cover will apply to 100% of each individual's deposit up to the €100,000 limit. This guarantee level, which will also apply to credit union savers, is now among the highest in the EU. The Government is committed to the stability of our financial system, so that money placed with an Irish credit institution would not be at risk. The Irish Government wants to protect the whole financial system and secure its stability.

It is of course a responsibility of the Board and management of a financial institution to ensure that it lends prudently. The Financial Regulator's licensing and supervision standards require banks to have in place appropriate policies relating to the management and control of lending. Irish banks have virtually no exposure to sub-prime securities. There are no proposals before Government for a guarantee or liquidity extension package. As far as meetings with the banks, the Central Bank and the Financial Regulator are concerned, such meetings are a normal part of my role as Minister for Finance given my responsibilities for the financial sector.