Martin Daly (Roscommon-Galway, Fianna Fail)
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62. To ask the Minister for Finance the action he will be taking to complete the task of normalising the domestic banking system to best serve the interests of the economy; and if he will make a statement on the matter. [16310/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy is aware, Government policy has always been that the banks, in which the State took a stake during the financial crisis, should be returned to private ownership. This is a long-standing policy, and significant progress has been made to achieve this goal. The State fully exited its ownership of Bank of Ireland in 2022 and has since reduced its shareholdings in AIB and PTSB to c.12% and c. 57.4% respectively from over 99% in each case.

Recovering taxpayer funds which were used to rescue the banks, allows us to put that money to more productive purposes for our citizens. Full recovery of the €29.4bn that went into the three banks is a realistic target. The State is currently c. €200m above breakeven on a mark to market basis as of 28 March 2025 (this is taking into account current market valuations of the remaining shareholdings in AIB and PTSB).

It is now a realistic target that the State could exit its position in AIB later this year should market conditions allow. As announced at the banks 2024 annual results, shareholder approval will be sought at the AGM in May in relation to a €1.2bn directed buyback with the State which will further reduce the shareholding level.

As Minister for Finance, I am conscious that the relationship between the State and the banks will need to be normalised as our shareholdings continue to reduce, which means considering the removal of the crisis-era measures which continue to be still in place. This is in line with the Programme for Government commitment of completing the task of normalising the domestic banking system to best serve the interests of the economy.