Bernard Durkan (Kildare North, Fine Gael)
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Question 81: To ask the Minister for Finance if he will indicate any advice given, if known, directly to Irish banks or through the Central Bank of Ireland by the ECB and or the European Commission in each of the five years prior to 2008; the extent to which such advice, if any, was followed; and if he will make a statement on the matter. [27889/11]

Michael Noonan (Limerick City, Fine Gael)
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Under the EU and domestic regulatory framework for financial services, the Central Bank of Ireland has responsibility for the regulation and supervision of banks and other financial institutions. National competent authorities responsible for supervision of the financial services sector are also, since the start of 2011, supported in their roles through the work of the new European Supervisory Authorities and the European Systemic Risk Board.

In line with its role under the EU treaties, the primary responsibility of the European Commission in the field of financial services is to develop proposals for legislation, which may subsequently be adopted by the Member States acting in co-decision with the European Parliament. In this context, the European Commission does not provide advice to banks in individual Member States either directly or through national central banks.

Notwithstanding this, the European Commission does have a general surveillance role in relation to economic and financial matters and prepares reports on a regular basis on, inter alia, the economic outlook in individual member states as well as for the euro area and the EU as a whole. The Commission also prepares an annual European Financial Stability and Integration Report which addresses market and policy developments and presents indicators on financial integration, efficiency, stability and competitiveness. These reports are addressed to a general audience and not to individual financial institutions. In a similar vein, the European Central Bank publishes a bi-annual Financial Stability Review.

The relationship between the Central Bank of Ireland and the European Central Bank is governed by the Treaty of Rome and the Statute of the European System of Central Banks (ESCB). The independence of the Governor and the Central Bank of Ireland in carrying out their ESCB related functions is guaranteed in statute. Section 6A (3) of the Central Bank Act 1942 provides that the Minister for Finance may not request information relating to ESCB functions from the Governor or the Bank. Additionally, section 19A (2) of the Act provides that the Governor has sole responsibility for the performance of the functions imposed, and the exercise of powers conferred, on the Bank by or under the Rome Treaty or the ESCB Statute.