Written answers

Wednesday, 18 February 2009

Department of Finance

Banking Sector Regulation

8:00 pm

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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Question 54: To ask the Minister for Finance the changes in personnel which he envisages in order that the public can have confidence that their will be an entirely different approach to the management of risk in Irish banks. [6230/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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As the deputy is aware, there have been several changes in recent weeks to the Boards and Management of several of the Irish financial institutions. In Anglo Irish Bank, in particular where the State is a shareholder, the Board appointed by me will ensure that every step possible is being taken to develop the highest standards of corporate governance and to protect the taxpayers' interest.

The implementation of the Bank Guarantee Scheme, announced in September 2008, has given rise to detailed engagement with the banks. In the period since September I have, along with my Department, the Central Bank, the Financial Regulator and the 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. This process will continue with all of the covered institutions to ensure that the objectives of the Scheme are met, including ensuring financial stability and minimising any potential cost to the Exchequer and taxpayers.

With respect to Anglo, the Board is preparing a comprehensive business plan which will be required to demonstrate how the Board will oversee the continued commercial operation of the bank in the best interests of the bank, the financial sector generally and the State.

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