Banks: Republic of Ireland

Treasury written question – answered on 15th October 2008.

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Photo of Gregory Campbell Gregory Campbell Shadow Minister (Work and Pensions)

To ask the Chancellor of the Exchequer what assessment has been made of the consequences for UK-owned and based financial institutions of the decision by the Irish government to underwrite all deposits held by Irish banks.

Photo of Dai Davies Dai Davies Independent, Blaenau Gwent

To ask the Chancellor of the Exchequer what assessment he has made of the implications for the competitiveness of United Kingdom banks of the decision on 29 September of the Irish Government to place an unlimited two year guarantee on all deposits and some debts in six Irish banks.

Photo of Ian Pearson Ian Pearson Parliamentary Under-Secretary, Department for Business, Enterprise & Regulatory Reform, Economic Secretary, HM Treasury

A number of EU member states have recently increased the compensation limits of their deposit-guarantee schemes. Member states have now agreed to coordinate their actions and to take account of the cross-border effects of national decisions. The European Commission is bringing forward a proposal to promote convergence of deposit-guarantee schemes.

The competitiveness of UK banks should not be adversely affected by these moves As set out in the Chancellor's statement on financial markets to the House of Commons of 13 October, the Government are bringing forward specific and comprehensive measures to ensure the stability of the financial system and to protect ordinary savers, depositors, businesses and borrowers.

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