Joan Burton (Dublin West, Labour)
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Question 159: To ask the Minister for Finance further to Parliamentary Question No. 119 of 30 January 2008, if the review on deposit protection has been completed by the Central Bank and Financial Services of Ireland as promised in 2008; the statistics on the number and value of savings accounts; the breakdown of the value and number of saving or deposit accounts of less than €20,000, between €20,000 and €50,000, between €50,000 and €100,000 and over €100,000 on deposit with banks, financial institutions and credit unions here; and if he will make a statement on the matter. [44970/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the CBFSAI that it undertook a survey of institutions, looking at the number and value of accounts covered by the Deposit Guarantee Scheme (DGS), in mid-2008. The survey was based on data as of June 2008. At the time the survey was conducted the deposit guarantee scheme provided for compensation of 90 per cent of eligible deposits up to a maximum of €20,000, per depositor. Institutions were asked to supply data on deposit accounts covered by the DGS for certain ranges. The survey did not include the ranges referred to in the Deputy's question.

The findings of the survey suggested that approximately 10 million deposit accounts fall under the DGS with an aggregate value in the region of €200 billion. Of these, approximately:

· 97 per cent of accounts, by number, had a balance less than €50,000

· 20 per cent of accounts, by value, had a balance less than €50,000

· 92 per cent of accounts, by number, had a balance less than €22,222 (representing 100% of a deposit where the maximum payout of 90% would be €20,000 as above)

· 12 per cent of accounts, by value, had a balance less than €22,222.

As the Deputy will be aware, since the original question, I announced on 20 September 2008 that the Government had decided to increase the compensation limit for the Deposit Guarantee Scheme in Ireland from €20,000 to €100,000 per depositor per institution. The cover now applies to 100% of each individual's aggregate deposits up to the prescribed limit per financial institution and also applies to deposits held in credit unions (the Registrar of Credit Unions has advised that 2.94 million credit union members held €12.5 billion of savings in Irish credit unions as of June 2009). The Deputy will also be aware that amendments were made to the DGS Directive through Directive 2009/14/EC in March of this year. The Financial Services (Deposit Guarantee Scheme) Act 2009 provided a statutory basis for the making of subsequent regulations (European Communities (Deposit Guarantee Scheme) Regulations 2009 (S.I. 228 of 2009)) in order to give legal effect to the Government decision on deposit guarantee arrangements and to transpose Directive 2009/14/EC. The European Commission is undertaking a further review of the Directive on Deposit Guarantee Schemes. The purpose of this review is to ensure over the longer term the greater effectiveness of the Directive and address any deficiencies or risks that may have arisen as evidenced by the current financial crisis. The review is ongoing and the Commission is expected to bring forward legislative proposals, if deemed necessary, early in 2010.