Bernard Durkan (Kildare North, Fine Gael)
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Question 110: To ask the Minister for Finance if he has had contact with the banks or the Central Bank with a view to reaching agreement on strategy for the future; and if he will make a statement on the matter. [39153/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I have met with the relevant institutions and there is ongoing contact between the Financial Services Regulator, the Central Bank, the credit institutions and officials of my Department.

The Deputy will appreciate that when I introduced the Credit Institutions (Financial Support) Legislation to this house, I made it clear that the disruption in international financial markets required a strong and decisive response by the Government to underpin the commitment of the authorities to Ireland's financial stability. This Government moved swiftly to put in place a guarantee to ensure Irish financial institutions' access to the normal liquidity and funding for their day to day business, and to give confidence to depositors and wholesale lenders. The Government quickly demonstrated its resolve to support the financial system, in order to support the economy and society, enterprises and families.

In tandem with the guarantee, the intensified scrutiny and oversight of financial institutions which was put in place since the onset of the turmoil in financial markets has been maintained and further strengthened to ensure that high standards of regulation are achieved in Ireland and that the quality of corporate Governance applying in all institutions, including lending practices, safeguard the interests of taxpayers. The goal at the end of this process is a banking system that is "fit for purpose" for the transformed financial environment in which it will find itself operating in the coming decades.

The legislation provides a detailed framework for the authorities to oversee and guide the assessment of strategic options by the banks themselves. The Irish scheme is firmly aligned with the main themes of the euro group plan, which contains an option to provide additional capital resources where appropriate to the banks.