Dáil Éireann Debate, Tuesday - 16 December 2025
377. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance if the revocation of Eligible Liabilities Guarantee scheme (ELG) and the Credit Institutions (Financial Support) Act in 2008 will have any effect on his powers in relation to banks, or any impact on the obligation or restriction on banks; and if he will detail any change of regulation stemming from these revocations; and if he will make a statement on the matter. [72570/25]
View answerThe Credit Institutions (Financial Support) Act 2008 (CIFS) (No.18 of 2008) provided the Minister of Finance with the powers to provide the bank guarantee. In October 2008, the European Commission approved the guarantee, as being necessary to remedy a serious economic disturbance in Ireland. It was introduced by way of statutory instrument, the Credit Institutions Financial Support Scheme (SI 411 of 2008).
The CIFS had a life of two years and guaranteed all of the deposit liabilities (retail, commercial and institutional), inter-bank borrowings, all covered bonds, senior debt and dated subordinated debt of participating credit institutions. Before its expiry date of 29 September 2010, a new guarantee scheme - the Eligible Liabilities Scheme (ELG) - was introduced. The coverage of the ELG Scheme was less extensive than CIFS and both ran in parallel until the expiry of CIFS.
Following the expiry of the ELG scheme the majority of deposits continue to be guaranteed under the statutory Deposit Guarantee Scheme (DGS), which covers retail deposits with all credit institutions authorised in Ireland (including credit unions) up to a maximum of €100,000 per qualifying depositor per institution (€200,000 in the case of joint accounts).
The terms of the CIFS Scheme imposed ongoing obligations on covered institutions. The Schedule to the CIFS Scheme contains provisions on restructuring, board representation, commercial conduct, remuneration and transparency, and impose reporting requirements on covered institutions.
There are a number of obligations set out in both the Credit Institutions Financial Support Scheme (CIFS) 2008 and Eligible Liabilities Guarantee (ELG) Schemes 2009, that continue to apply to Bank of Ireland, AIB and PTSB group companies. However, it should be noted that these obligations have become redundant, due to there no longer being any guaranteed liabilities under the Schemes.
The Minister and the Central Bank of Ireland (“CBI”) imposed a number of obligations on the institutions requiring them to certify compliance with relevant matters; report and provide information to the Minister and to CBI; comply with certain restrictions relating to capital, share transactions and financial targets; and comply with any powers exercised by the Minister over the governance of the institutions.
These obligations are also separate to those which the institutions owe to the European Central Bank and to the CBI as its regulators.
Credit institutions authorised by the CBI are required to comply with the prudential reporting requirements set out under Regulation (EU) No 575/2013 (CRR). This provides for a comprehensive template for mandatory reporting of financial and operational data by banks throughout the EU. The comprehensive reporting requirements in the CRR will remain once the CIFS and ELG schemes have been revoked. The revocation will eliminate the duplication of reporting requirements.
It should be noted that in 2022, Deeds of Partial Release were entered into by the Minister and each of Bank of Ireland, AIB and PTSB Group, to release the banks from contractual obligations entered into in CIFS Guarantee Acceptance Deeds in 2008 and ELG Scheme Agreements in 2009.
Furthermore, and 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 2025.
Since the introduction of the Eligible Liabilities Guarantee scheme and the Credit Institutions (Financial Support) Act in 2008, European regulatory and supervisory structure for banks has changed fundamentally. Financial regulation has transformed significantly in more recent years as a result of changes introduced through domestic reform and at EU level. This has included a material strengthening of banking regulation, and consequently the Government has committed to the normalisation of the domestic banking system.
