Tommy Broughan (Dublin North East, Labour)
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Question 89: To ask the Minister for Finance if he will estimate the full impact of the new loan-to-deposit, LTD, ratio of 122.5% on Irish banks; the parallel strategy he will undertake to address the credit crunch for Irish small and medium enterprises; and if he will make a statement on the matter. [21719/11]

Michael Noonan (Limerick City, Fine Gael)
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The banks involved in the PCAR process submitted detailed deleveraging plans for the three years to the 31 December 2013 to the Central Bank of Ireland (CBI) as part of the Financial Measures Programme, which was announced on 31 March 2011. These plans outlined how the institutions would achieve a loan-to-deposit ratio of 122.5% by end 2013. To monitor progress, semi-annual interim targets have been set for each of the institutions and progress against these targets will be reported every six months. The first reporting date by the institutions to the CBI is 31 December 2011. Subsequent to 31 March 2011, AIB and BOI were required to provide alternative deleveraging options to account for the fact that the transfer of sub-EUR 20 million land and development loans to NAMA will now no longer take place. These plans were submitted to the CBI in May 2011.

The Deputy will be aware that the banking system restructuring plan creates capacity for the two Pillar Banks, Bank of Ireland and AIB, to provide lending in excess of €30 billion in the next three years. SME and new mortgage lending for these banks is expected to be in the range of €16-20bn over this period. In each bank, a team of senior managers will be dedicated to the task of ensuring lending continues to grow to support economic growth. This lending capacity is incorporated into the banks' deleveraging plans which allow for repayment of Central Bank funding through asset run-off and disposals over the period to 2013.

Tommy Broughan (Dublin North East, Labour)
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Question 90: To ask the Minister for Finance how Irish banks' capital-to-assets ratios have changed from Q3 2008 to Q2 2011; where he intends these ratios to be configured in Q4 2012; and if he will make a statement on the matter. [21720/11]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy should be aware that this reply is based on the assumption by the Central Bank that the term 'Capital to Assets ratios' referred to by the Deputy is a leverage ratio. The Central Bank has not imposed a leverage ratio on Irish banks. On this basis the Deputy will note that the Basel Committee on Banking Supervision (BCBS) has proposed a leverage ratio in Basel III proposals. Further details of the Basel III proposals can be accessed on the BCBS website.

The Deputy should also note that 'total asset numbers' and 'shareholder equity' for banks are reported on a half yearly basis and are available from the banks on their websites.