Written answers

Tuesday, 7 October 2008

9:00 pm

Photo of Ciarán LynchCiarán Lynch (Cork South Central, Labour)
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Question 195: To ask the Minister for Finance the number and value of deposits in Irish banks which are in excess of €100,000 and which are covered by State guarantee; the number and value of such deposits which are personal accounts; the number which are business accounts; and if he will make a statement on the matter. [33643/08]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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The Deputy will be aware that, since the Government decision of 20 September 2008 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 Government has now put in place a guarantee arrangement to safeguard all deposits (retail, commercial, institutional and interbank), covered bonds, senior debt and dated subordinated debt (lower tier II), with the following banks: Allied Irish Bank, Bank of Ireland, Anglo Irish Bank, Irish Life and Permanent, Irish Nationwide Building Society and the Educational Building Society and such specific subsidiaries as may be approved by Government following consultation with the Central Bank and the Financial Regulator.

Legislation to provide statutory effect to this decision, the Credit Institutions (Financial Support) Act 2008, was enacted by the Oireachtas on Thursday 2 October.

For Irish deposits with Irish-based subsidiaries of foreign banks that are regulated by the Irish Financial Regulator, €100,000 per depositor per institution will be guaranteed by the statutory Deposit Guarantee Scheme. This guarantee level will also apply to credit union savers. Branches of foreign credit institutions authorised in the European Economic Area (EEA) and operating in Ireland are entitled to apply to benefit from the enhanced guarantee on a 'top-up' basis. My Department is currently preparing legislation to give statutory effect to this increase from the date of my announcement.

My Department has been informed by the Central Bank and Financial Services Authority of Ireland (CBSFAI) that the total value of deposits owned by Irish residents is approximately €179 billion. This is an aggregate figure based on the Central Bank Monthly Statistics up to the end of August 2008.

While the CBSFAI does not routinely collect disaggregated data on deposits owned by Irish residents, such as the value and number of personal accounts and business accounts in Irish banks, I have forwarded the Question to the CBFSAI, which will reply directly to the Deputy.

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