James Bannon (Longford-Westmeath, Fine Gael)
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Question 48: To ask the Minister for Finance the way he will manage the State role on the banks which are to be recapitalised. [12519/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As a general rule, the State's relationship with the banks following their proposed recapitalisation will be managed through two conduits. Firstly the NPRF Commission will hold the shares on the State's behalf and develop a shareholder/company relationship with the banks. Also arrangements will be put in place to monitor closely the commitments made by the banks in relation to the recapitalisation and to monitor the State's interests as a stakeholder.

Secondly, I will appoint 25% of the members of the Boards of these banks. Initially this will involve two extra Directors as there are already two Directors appointed from panels nominated by myself to each of the banks to be recapitalised.

In addition, I have other avenues of influence in relation to the banks, for example under the Government Guarantee Scheme and the associated legislation and deeds.