The Credit Institutions (Financial Support) Scheme 2008 applies comprehensive control, monitoring and information provisions to the credit institutions covered by the scheme which will ensure enhanced coordination and close working between the Central Bank, the Regulatory Authority and my Department so as to ensure the realisation of the Scheme's objectives. This enhanced cooperation facilitates appropriate detailed information exchange, liaison with the Governor and Chief Executive of the Regulatory Authority as well as consultation on specific prudential aspects of the terms and conditions to ensure a consistent approach across all the relevant public bodies by reference to the objectives of the Scheme.
The implementation of the Scheme is subject to formal monitoring by the Governor and Chief Executive of the Regulatory Authority and its terms are subject to review from time to time, at no later than six month intervals. The Regulatory Authority has already advised me that, in light of the severe difficulties faced by credit institutions arising from the crisis of confidence in the global credit market, it will continue to intensify its on-site and off-site supervision of credit institutions. The scheme also provides that I will report to the Oireachtas Committee on Finance and the Public Service at six month intervals on the level of the charges received from covered institutions and in relation to compliance with the terms and conditions of the Scheme and progress in relation to the purposes of the Act of 2008.
The enhanced cooperation I have outlined is supported by clear obligations on covered institutions to submit reports to the Regulatory Authority in relation to a range of matters including liquidity requirements, capital ratios, asset quality, risk exposures and funding costs, and to provide such other reports as the Regulatory Authority may request at my initiative. There is also significant provision for the regulation by the Regulatory Authority, in consultation with the Minister, of the commercial conduct of the institutions participating in the Scheme.
The Government is satisfied that, alongside the powers provided directly under the scheme, the relevant public bodies and in particular the Regulatory Authority have the authority and legal power to take whatever steps are necessary to continue to look after the interests of all depositors and customers of the covered institutions as well as that of the State and the taxpayer.
I am satisfied that the close coordination and liaison arrangements put in place between the Central Bank, the Financial Regulator and my Department will ensure effective management of the Scheme in an integrated fashion by all of the bodies concerned as well as clear lines of accountability with regard to their respective responsibilities.