Leo Varadkar (Dublin West, Fine Gael)
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Question 255: To ask the Minister for Finance the persons and organisations with whom he met with regard to his decision to intervene in the banking sector since September 2008 to date in 2009; and if he will make a statement on the matter. [1114/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Bank Guarantee Scheme, and the conditions attached, has given rise to detailed engagement by Government with the banks. In the period since September, I have, along with my Department, the Central Bank, the Financial Regulator and the National Treasury Management Agency (NTMA), worked with the covered financial institutions to examine all options to maintain stability and the proper functioning of the banking system.

This process has been comprehensive and structured, addressing such issues as the business plans of the banks, potential private investment, financial market expectations, and the role of the banks in supporting the real economy. In addition, my Department and I have, as the Deputy would expect, spoken with very many institutions, organisations, advisers, potential investors, unions, members of the Oireachtas and private individuals.

Leo Varadkar (Dublin West, Fine Gael)
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Question 256: To ask the Minister for Finance if objective criteria underpinned the bank recapitalisation scheme announced on 21 December 2008; if so, the detail of those criteria; and if he will make a statement on the matter. [1115/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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In its decisions of 28th November and 14th December 2008, the Government decided to support a recapitalisation programme for credit institutions in Ireland of up to €10 billion. You will be aware that on 21 December, I announced specific proposals in relation to the three major financial institutions. The Deputy will also be aware that we are in discussions with certain other institutions about their future capital needs.

The Government's actions in response to the international financial crisis generally have been guided by two clear principles; the State will not let any systemically relevant financial institution fail and secondly, any State involvement in financial institutions will protect taxpayer's interests and have regard to legal and EU implications.

In deciding to support specific recapitalisation proposals for certain banks here, the Government had regard to a number of factors including the systemic importance of the institution. The Government also had regard to the institution's relative capital strength following a shift in market expectations with regard to the level of capital banks should hold, and any alternatives available to the institution. The recapitalisation proposals have the specific objective of ensuring that the financial system in Ireland meets the everyday financial needs of individuals, businesses and the overall economy. Accordingly, institutions participating in the recapitalisation scheme are required to comply with a credit package that addresses, among other things, support for small to medium businesses and mortgage holders.

With regard to the proposals announced for Bank of Ireland and Allied Irish Bank, I have recently reiterated that the Government sees Bank of Ireland and Allied Irish Bank as central to the Irish financial system and essential to the proper functioning of the economy. The Government wishes to ensure that both Bank of Ireland and Allied Irish Bank remain as independent banks and has re-affirmed that it is proceeding with the planned recapitalisation of Bank of Ireland and Allied Irish Bank on this basis. As the Deputy will be aware, we are also in discussions with certain other institutions about their future capital needs, if any. We will be prioritising these discussions with a view to reaching an early conclusion.

Leo Varadkar (Dublin West, Fine Gael)
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Question 257: To ask the Minister for Finance the details of all written submissions received by him in respect of intervention in the banking sector since the announcement of the bank guarantee scheme; and if he will make a statement on the matter. [1117/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Since the introduction of the Bank Guarantee Scheme in September, I have received correspondence from various sectors of society, including the Financial Regulator, the NTMA, Public Representatives, the banking industry, both home and abroad, and the general public. The Deputy will appreciate that given the amount of correspondence received, it is not possible to give details of all written submissions.