Michael McGrath (Cork South Central, Fianna Fail)
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Question 49: To ask the Minister for Finance the amount of European Central Bank and Central Bank of Ireland funding currently extended to the covered institutions; his plans to reduce the reliance on this funding; if specific targets in terms of amounts and dates have been set for the reduction of this funding; and if he will make a statement on the matter. [29346/11]

Michael Noonan (Limerick City, Fine Gael)
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The Central Bank has informed me that borrowing from the Eurosystem relating to monetary policy operations by the covered institutions stood at €68.430bn as of 31 August 2011. The figure for Exceptional Liquidity Assistance (ELA) is contained within the other assets of the Financial Statement of the Central Bank of Ireland. As at the 26th of August the figure for other assets was €55.949bn. This figure is predominantly made up of ELA.

A key component of the Financial Measures Programme is the establishment of transparent plans to reduce the Irish banking system to a manageable size and to stabilise its funding base. The Central Bank has agreed with the External Partners that a sustainable Loan to Deposit Ratio for the aggregate domestic banking system is 122.5%. Banks will implement deleveraging plans agreed with the Central Bank in order to transition to smaller balance sheets and a more stable funding base, which includes reduced reliance on ECB and ELA funding.