Credit Institutions (Financial Support) (Revocation) Scheme 2025: Motion
Seanad Éireann — 2025-12-10
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Charlie McConalogue (FF), Donegal

I thank the Members of the House for bringing this through the House today. I am bringing these motions before the Houses of the Oireachtas on behalf of the Minister for Finance, requesting resolutions to approve the following regulations in draft: the Credit Institutions (Financial Support) (Revocation) Scheme 2025 and the Credit Institutions (Eligible Liabilities Guarantee) (Revocation) Scheme 2025.
The Credit Institutions (Financial Support) Act, 2008 was enacted on 2 October and this provided the Minister for Finance with the powers to provide the bank guarantee. On 20 October 2008, it was introduced by way of statutory instrument via the credit institutions financial support scheme, which was SI 411 of 2008. The statutory instrument set out the terms and conditions in which institutions specified, by way of ministerial order made under section 6(1) of the Act, could benefit from the guarantee. On 9 December 2009, the eligible liabilities guarantees scheme, SI 490 of 2009, was introduced, having been approved by the Oireachtas. This scheme was made pursuant to section 6(4) of the Credit Institutions (Financial Support) Act 2008. The eligible liabilities guarantee scheme covered deposits and certain unsecured death securities for participating institutions where the liabilities were incurred after January 2010.
The terms of the credit institutions financial support scheme imposed ongoing obligations on covered institutions. I refer in particular to paragraphs 24 to 52 of the schedule to the credit financial support scheme, which contain provisions on restructuring, board representation, commercial conduct, remuneration and transparency and which impose reporting requirements on covered institutions. The obligations imposed on participating institutions under the terms of the eligible liabilities guarantee scheme are chiefly concerned with the establishment and operation of the scheme. The draft statutory instruments to revoke both schemes will remove the obligations placed on the relevant banks, being Bank of Ireland, AIB and PTSB Group, under the schedules of the schemes.
There are several obligations set out in the credit institutions financial support scheme and the eligible liabilities guarantee scheme that continue to apply to Bank of Ireland, AIB and PTSB Group companies. These obligations have become redundant due to there no longer being any guaranteed liabilities under the schemes and duplication of requirements under EU legislation.
Since the introduction of the eligible liabilities guarantee scheme and the Credit Institutions (Financial Support) Act 2008, European regulatory and supervisory structure for banks has changed fundamentally.
Credit institutions authorised by the Central Bank of Ireland are required to comply with the prudential reporting requirements set out under EU Regulation No. 575/2013, known as the capital requirements regulation. This provides for a comprehensive template for mandatory reporting of financial and operational data by banks throughout the EU.
The obligations and rights assigned to the Minister under the CIFS and ELG legislation, such as data reporting or ensuring compliance with codes of practice, have largely been codified into either domestic primary legislation or the capital requirements regulation, as amended. The comprehensive reporting requirements in the capital requirements regulations will remain once the credit institutions financial support scheme and the eligible liabilities guarantee scheme have been revoked. The revocation will eliminate the duplication of reporting requirements. In 2022, the Minister and Bank of Ireland, AIB and PTSB Group companies entered into deeds of partial release to release the banks from contractual obligations entered into in CIFS guarantee acceptance deeds in 2008 and ELG scheme agreements in 2009.
The State has significantly divested from its bank shareholdings. In line with the programme for Government commitment to complete the task of normalising the domestic banking system, a further normalisation of the relationship between the State and the domestic banking system was announced in June of this year. This included the removal of certain crisis-era measures, including certain restrictions pertaining to remuneration.
The draft schemes will revoke the credit institutions financial support scheme, SI 411 of 2008, and the eligible liabilities guarantee scheme, SI 490 of 2009. The revocation schemes are made under section 6(4) of the Credit Institutions (Financial Support) Act 2008. Section 6(5) of the Credit Institutions (Financial Support) Act 2008 provides that regulations may be made only if a draft of proposed regulations is laid before each House of the Oireachtas and a resolution approving the draft has been passed by each House.
In the context of the programme for Government commitment, I ask the House, on behalf of the Minister for Finance, to approve both resolutions to approve the schemes in draft, which have been laid before the House.

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Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/seanad/2025-12-10/debate/main
Retrieved: 2026-08-14T04:54:26+00:00
Sitting date: 2025-12-10