Bernard Allen (Cork North Central, Fine Gael)
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Question 23: To ask the Minister for Finance if he has assessed options to isolate impaired loans within banks in order that a good bank could be put in a position to resume lending with a clear balance sheet and new capital. [12517/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Government has indicated that it is committed to ensuring the stability of the Irish financial system and protecting systemically relevant institutions. In this regard and as the Deputy will be aware, the Government is reviewing proposals for dealing with the risks associated with certain assets in order to strengthen relevant institutions and ensure the flow of credit to the real economy. I have asked Dr. Peter Bacon and the National Treasury Management Agency to report to me on this matter.

I have seen the initial report prepared by Dr. Peter Bacon for the NTMA. The proposals contained in the report will inform the Government's ongoing considerations, involving the Financial Regulator, Central Bank, the NTMA and our legal and financial advisers.

Frank Feighan (Roscommon-South Leitrim, Fine Gael)
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Question 24: To ask the Minister for Finance if he plans to make institutional changes in the arrangements for financial regulation; if he will publish an assessment of issues in advance of presenting proposals to Government; and if he will present the heads of any legislative Bill to the committees of the Houses of the Oireachtas which are investigating regulatory failure for early consideration of reform proposals. [12558/09]

Mary Upton (Dublin South Central, Labour)
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Question 65: To ask the Minister for Finance his plans for the establishment of a banking commission here; if he has submitted these plans to the Cabinet for consideration; if new legislation will be required in order to establish such a commission; when he will introduce such legislation; and if he will make a statement on the matter. [12325/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 24 and 65 together.

I am bringing proposals before the Government to introduce new structures for banking regulation that will provide for the integration of Central Bank responsibilities with regulatory and supervisory functions, new standards of corporate governance and a new approach to enhance consumer protection. These changes are designed to restore Ireland's reputation and are consistent with the emerging international agenda for reform in the financial services sector. The structural changes and a substantial increase in regulatory capacity will lead to a more effective and efficient financial services regulatory system which will be aligned to the best international standards.

There is growing and extensive international literature on the causes of the financial crisis and identification of issues that need to be addressed on the supervisory front, to which I do not propose to add. I particularly welcome the report of the de Larosière Group, prepared at the request of the President of the European Commission and published on 25 February 2009. The De Larosière report provides a thorough analysis of the origins of the current financial crisis and, while acknowledging there is room for debate on the relative importance to be assigned to regulation in relation to the crisis, nonetheless sets out clear recommendations for reform of financial services regulation and supervision, which I welcome. The proposals I am bringing to Government are fully consistent with its central proposal for action at national level to strengthen the link between macroeconomic surveillance and macro prudential supervision.