Arthur Morgan (Louth, Sinn Fein)
Link to this: Individually | In context

Question 106: To ask the Minister for Finance if he has given consideration to a third banking force; the discussions he has had with the banking sector regarding same; his views on whether a third banking sector would enhance confidence in the sector and competitiveness throughout the economy; his further views on whether there is a role for, or is he proposing to have discussions with a bank (details supplied) regarding same; and if he will make a statement on the matter. [8273/10]

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

As independent bodies, it is a matter in the first instance for the financial institutions themselves, whether covered by the Bank Guarantee Scheme or not, to consider and determine their strategic arrangements, subject of course to necessary regulatory, competition and other relevant requirements.

Regarding the State's role, its primary consideration continues to be to protect, in the public interest, the financial and economic system of the State. The public support that has so far been provided to individual institutions and to the system as a whole has been provided to achieve that objective. Where State capital support has or will be provided to individual institutions, or in the circumstance of an institution coming within the NAMA support framework, it has or will be necessary to submit a restructuring plan for the relevant institution to the EU Commission. So far, restructuring submissions have been made for Anglo Irish Bank, Bank of Ireland and AIB. These plans are currently being considered by the Commission. The outcome of that restructuring plan process will have to be taken on board by the relevant financial institutions and the State. Depending upon final decisions, such an outcome may have implications for the structure of banking in Ireland.

I have made clear that I will be insisting that the restructuring plan process leads to a reformed and reinvigorated banking system that can serve our economy in a proper manner. However, it is too early in the process to outline a definitive shape for that new system within which there has to be scope for all credit institutions operating in the Irish market to play their full part.