Peter Mathews (Dublin South, Fine Gael)
Link to this: Individually | In context

Question 77: To ask the Minister for Finance the amounts owing by the six Irish banks to the ECB; and if he will make a statement on the matter. [12428/11]

Peter Mathews (Dublin South, Fine Gael)
Link to this: Individually | In context

Question 78: To ask the Minister for Finance the amounts owing by the six Irish banks to the Irish Central Bank; and if he will make a statement on the matter. [12429/11]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

I propose to take Questions Nos. 77 and 78 together.

The Central Bank of Ireland publish figures monthly on ECB lending to the Irish banking sector in its Money and Banking Statistics. The latest figures published by the Central Bank of Ireland (Table A.4 .1 Domestic Market Credit Institutions: Aggregate Balance Sheet) show that ECB lending to the six domestic banks totalled almost €82.8bn at the end of March. The end-April figures for ECB lending to the six banks are not due to be published by the Central Bank until the end of May. The March figure shows a reduction of almost €6bn from the end-February figure of almost €88.7bn. Much of this reduction in ECB borrowing that took place during March was due to the maturity or ineligibility of collateral being used in the operations.

The latest figures published by the Central Bank of Ireland (Table A.2 Financial Statement of the Central Bank of Ireland) show that the 'Other Assets' of the Central Bank totalled €54.1bn at the end of April. This 'Other Assets' figure includes lending by the Central Bank of Ireland to the six domestic banks.

The Deputy will be aware that the agreed EU-IMF Programme provides for a recapitalisation, fundamental downsizing, restructuring and reorganization of the Irish banking sector. The aim of the process is a smaller banking system, which will be capitalised to highest international standards should allow the financial institution access to normal market sources of funding. This will enable the Irish banks to reduce their reliance on Eurosystem and Central Bank funding mechanisms.