Jonathan O'Brien (Cork North Central, Sinn Fein)
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Question 45: To ask the Minister for Finance if there will be a review into the fitness and probity of public interest directors of banks which have received State assistance; if the review will proceed or impinge upon the announcement by him to remove all directors in banks who were in place before 2008; and if he will make a statement on the matter. [9646/11]

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 51: To ask the Minister for Finance the position regarding the review being taken by the Central Bank into the fitness and probity of all existing executive and non-executive directors of banks which have received State assistance; if the review will precede or impinge upon the announcement by him to remove all directors in banks who were in place before 2008; and if he will make a statement on the matter. [9647/11]

Jonathan O'Brien (Cork North Central, Sinn Fein)
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Question 53: To ask the Minister for Finance when he will restructure and replace the board of directors of the six guaranteed Irish banks, as per his announcement after the publication of the Nyberg Report; and if he will make a statement on the matter. [9645/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 45, 51 and 53 together.

The Deputies will be aware that on 22 March 2011, the Central Bank of Ireland published a consultation paper proposing the implementation of new statutory fitness and probity powers for the financial services industry. In this regard, the Central Bank is seeking views on proposed new statutory grounds which are identified in the Central Bank Reform Act 2010 and will set the requirements for entry into and removal from a senior position within regulated firms. This Act provides additional criteria on when the Central Bank can use its powers to refuse an application to appoint an individual to a senior position or remove someone, views are being sought on what senior positions should be subject to the new regime. The Central Bank expects the new regulations and statutory standards implementing the regime will come into effect from September 2011. The Central Bank has requested interested parties to submit their proposals by 20 May 2011.

In addition, the Head of Financial Regulation, Mr. Matthew Elderfield, announced that the Central Bank is planning to review the fitness and probity of all existing executive and non-executive directors of banks which have received State support. The Central Bank will assess any incumbent directors who plan to be in post after 1 January 2012 against the new standards, including competence and track record in the period leading up to the financial crisis.

The Deputy will be aware that in my statement on the Nyberg Report in this House on 20 April 2011, I set out a number of measures designed to strengthen Bank boards and bank management. These measures provide that the Chairman of each institution provides me and the NTMA with a Board Renewal Plan, each institution will also be asked to provide a Management Renewal Plan. The Board Renewal Plan will set out for each institution the steps to ensure that the skills and competence levels of board members are fully adequate to meet the demands of the current and future banking system. In this regard, a programme of rotation of board members, commencing with board members appointed before September 2008 will be expected as part of the plan. This will ensure a smooth process which will ensure the succession of incumbent board members who were in place before September 2008. I expect this succession to be completed by 2012.

In addition, my Department recently placed advertisements in the national papers seeking expressions of interest from suitably qualified persons for inclusion among those to be appointed or nominated to Boards of Directors of Banks. This gives all persons who are interested in and qualified to act as Directors the opportunity to advise the Minister of their interest. The advertising for expressions of interest should ensure a high calibre field from which Directors may be chosen and makes the process more open and transparent. It is part of the commitments given in the Programme for Government to re-structure bank boards and replace directors who presided over failed lending practices. Closing date for receipt of expressions of interest is Thursday 12 May. These measures will compliment the Central Bank's review of the fitness and probity of the public interest directors in the banks and ensure that people operating at senior levels in financial institutions are fit and proper to undertake their roles.