Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
Link to this: Individually | In context

Question 129: To ask the Minister for Finance the processes and reporting that are in place to ensure section 44 of Statutory Instrument No. 411, whereby covered institutions are required not to pass on the costs of the scheme to customers in an unwarranted manner, is monitored and evaluated; and if he will make a statement on the matter. [24412/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

The Bank Guarantee Scheme is a major benefit not only to the covered institutions but also to their customers and the economy as a whole. As the Deputy is aware, the scheme includes the application of strict terms and conditions on the covered institutions to ensure that the public interest, which includes the taxpayer, the general consumer and small business sector, is paramount.

My Department and the Financial Regulator have set up mechanisms for monitoring the financial institutions in relation to the guarantee. The auditors of each covered institution are reporting quarterly on compliance with the scheme, including section 44. The regulator has advised me that two reports, one for the quarter ended December 2008 and one for the quarter ended March 2009 have been received to date.

The Financial Regulator monitors, reviews, and approves bank charges as outlined under section 149 of the Consumer Credit Act.