Seán Sherlock (Cork East, Labour)
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Question 93: To ask the Minister for Finance if he will provide an update on the progress with the restructuring and consolidation of the Irish banking system; and if he will make a statement on the matter. [41633/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The State's primary consideration in its involvement in the banking system is to protect, in the public interest, the financial and economic system of the State. Therefore, all of the Government's actions in the banking area are designed to support the development of a reformed and reinvigorated banking system that can serve our economy in a proper manner and, within which, there is scope for all viable credit institutions operating in the Irish market to play their full part. As outlined in my Statement on Banking on 30 September last, financial institutions, with the help of the State, are now taking steps to meet their required capital needs and certain reorganisation developments within the sector are also proceeding. For example, the Government has decided to split Anglo Irish Bank into a Funding Bank and a separate Asset Recovery Bank which will work out and realise the maximum value from the bank's non-NAMA assets over time. This revised approach is currently under examination by the European Commission under State Aid rules. AIB is taking various steps, including asset sales and placing an open offer of new shares to raise additional capital, which will likely result in further investment by the National Pensions Reserve Fund Commission. Also, two bids for the purchase of the EBS Building Society, one from an existing bank and the other from a consortium of international investors, are currently under active consideration. In addition, viability and restructuring plans in respect of Irish Life and Permanent and Irish Nationwide Building Society have been submitted to the European Commission and are now under consideration. The support of the State should allow an orderly transition of our banking system to meet the requirements of the country in the coming years.