Kieran O'Donnell (Limerick East, Fine Gael)
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Question 58: To ask the Minister for Finance if he will report on the measures being taken under the credit institutions financial support scheme to ensure the capital adequacy and solvency of the banks involved; and if he will make a statement on the matter. [38849/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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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, the safeguard of 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.

An integral part of ongoing regulation is a detailed and ongoing assessment and analysis of the capital adequacy and solvency of all credit institutions within the state to ensure the stability of the system and flow of credit. Further, the Credit Institutions (Financial Support) 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. Each institution must take appropriate steps to ensure that their levels of capital are aligned with their needs. The State has a keen interest in the health and security of the banking institutions, because of their role in the economy. Clearly, my Department, the Central Bank and the Financial Regulator will be in continuing contact with the institutions on their business plans, capital position and their liquidity.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 59: To ask the Minister for Finance the meetings or correspondence there was between his office and a company (details supplied) in view of the decision by the company not to join the credit institutions guarantee scheme; and if he will make a statement on the matter. [38666/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Credit Institutions (Financial Support) Scheme provides a guarantee for covered institutions until 29 September 2010.

Participation in the scheme is open to all eligible credit institutions and it is a matter for each institution to make its own decision on whether or not it wishes to join the scheme. In the process of establishing the scheme, there has been regular contact between my officials and a wide range of financial institutions, including the company referred to by the Deputy.

The company referred to has chosen, for its own reasons, not to join the scheme and my Department was informed of this decision by letter dated 28 October 2008. The company has publically stated that this decision was influenced by the fact that its parent company has joined the UK Government Capital Guarantee Scheme and it did not see a need to participate in two schemes.