Willie O'Dea (Limerick City, Fianna Fail)
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To ask the Minister for Finance if he is satisfied that adequate oversight exists in terms of the asset disposal programme being undertaken by the covered banks in order to protect the interests of the taxpayer; and if he will make a statement on the matter. [42314/12]

Michael Noonan (Limerick City, Fine Gael)
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As you will be aware, the three PLAR banks are required to deleverage their balance sheets, including inter alia by disposal of loan portfolios as outlined in the Central Bank’s Financial Measures Programme 2011. IBRC is subject to an EC Restructuring Plan which requires it to work out its balance sheet over time, including where possible via disposal of loan books. To this end, each of the banks have established dedicated Non-core units focused on managing sales processes and are required to report quarterly to the Central Bank which monitors their progress in achieving their deleveraging programmes. Each bank has a deleveraging committee to govern, monitor and oversee its deleveraging plans. Representatives from my department and the Central Bank attend the meetings of those committees, as non-voting observers. My department has established a Deleveraging Review Committee to oversee and monitor the operation of the institutions’ deleveraging committees and to refer transactions that give rise to actual or financial stability considerations to the Central Bank for joint consideration. Additionally, each quarter, the banks and the Authorities meet with and update the External Partners (IMF/EU/ECB) as to the progress of the plans including asset sales.

In most instances the Banks have also employed expert professional sales advisors to assist in ensuring that the sales process undertaken maximises sales proceeds. These processes are conducted under strict confidentiality rules to ensure the economic position of the bank’s and by extension the taxpayer as majority or part owner is fully protected. As referred to above the Deleveraging Committees and the Main Boards of the Banks must approve all material sales conducted by the banks. To date significant progress has been made. Total deleveraging achieved across government supported banks was €53bn as at 30 April 2012. Deleveraging has been achieved within planned assumed discounts. From a capital perspective, the loss incurred on the divestment of these assets is broadly offset by a reduction in the level of risk weighted assets. The layers of Governance described above, give me sufficient comfort that adequate oversight is in place to protect the interests of the taxpayer.