Bernard Durkan (Kildare North, Fine Gael)
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Question 39: To ask the Minister for Finance if he is satisfied that previous or existing dialogue and unity of purpose exists between all Central Banks within the EU with a view to achieving a co-ordinated strategy in dealing with borrowing, lending and recovery; if the ECB maintains sufficient contact with each member state's central bank in order to maximise the combined strength of the EU in the context of economic recovery throughout the EU; and if he will make a statement on the matter. [34425/11]

Michael Noonan (Limerick City, Fine Gael)
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As Minister for Finance, I have no function in the relationship between the European Central Bank and national central banks. The Governor of the Central Bank carries out his European Central Bank-related functions under the Treaty of Rome and the Statute of the European System of Central Banks (ESCB) and his independence in doing so is guaranteed. 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.

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, article 282 (3) of the Treaty of Rome provides that the European Central Bank shall be independent in the exercise of its powers and that European Union institutions, bodies, offices and agencies and the governments of the Member States shall respect that independence.

However, at their meeting on 26 October, EU Heads of State and Government agreed on a range of measures additional to those taken at the 21 July summit to address the effects of the financial crisis both for the EU as a whole and within the euro area. These measures foresee further significant efforts to ensure fiscal consolidation in Member States, including support for those Member States in difficulty and strengthening of euro area governance.

In this context, EU leaders also agreed that further measures were needed to address the strength and stability of the banking sector including the need to ensure medium-term funding of banks, in which both national Central Banks and the European Central Bank have a key role to play. In addition, EU leaders agreed that the quality and quantity of banks' capital needed to be significantly strengthened and they agreed on a significantly higher capital ratio of 9% of the highest quality capital, to be attained by banks not later than 30 June 2012. National supervisors, under the auspices of the European Banking Authority, are to ensure that banks, in meeting this capital target, maintain the flow of credit to the real economy.

I can confirm in this context that Irish banks do not require additional capital under the higher standard now required. This outcome reinforces the robust and conservative nature of our Prudential Capital Assessment Review (PCAR) exercise in March of this year.