Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

206. To ask the Minister for Finance The number of deposits covered by the deposit guarantee scheme; and if he will make a statement on the matter. [17958/14]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Central Bank of Ireland is responsible for the operation of the Deposit Protection (Guarantee) Scheme (DGS), which covers licensed credit institutions operating in the State.  Each credit institution covered by the DGS is required to maintain a balance in the Deposit Protection Account (DPA) equivalent to 0.2% of their total deposits in order to fund the DGS. I am advised by the Central Bank that it currently collects data relating to the total deposits of credit institutions so that it can calculate their contributions to the DPA. The Central Bank tells me the figure for total deposits in the financial sector in Ireland is €465 billion at end February 2014.

The level of deposits actually covered by the DGS scheme would be significantly lower than total deposits. For example, only amounts up to €100,000 are covered per eligible depositor and various deposits are excluded from coverage, such as deposits by financial institutions and insurers, large companies and inter-bank deposits. 

The new EU Directive on Deposit Guarantee Schemes which will come into effect in mid 2015 requires that all credit institutions mark deposits in such a way that allows for the immediate identification of deposits that are eligible for protection under the Deposit Guarantee Scheme. The Central Bank is currently working with credit institutions to meet the requirements of the Directive.