Richard Bruton (Dublin North Central, Fine Gael)
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Question 172: To ask the Minister for Finance if he or his officials or agencies have been involved in discussions between a bank (details supplied) and other banks regarding the establishment of a third banking force that would have provided a broad-based mix of banking services; if he encouraged its formation; if his attention has been drawn to the resistance by a building society that hampered its emergence; and the efforts that were taken by him to overcome that resistance. [8841/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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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.

The State's primary consideration continues to be to protect, in the public interest, it's 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. However, neither of the institutions referred to in the Deputy's question have received capital support from the State and are, therefore, not subject to any requirements for restructuring that may arise from the provision of such support.

I fully support the idea of a reformed and reinvigorated banking system that can serve our economy in a proper manner and within which there is scope for all credit institutions operating in the Irish market to play their full part. As the Deputy will be aware, all of the institutions participating in NAMA are subject to restructuring plan requirements. I will continue to encourage institutions to examine, separately or jointly, how they can meet their capital or funding needs and develop business models to support economic development. I will consider all or any option presented to me and, insofar as possible, play a positive role in supporting the delivery of viable plans consistent with competition and State aid requirements.