Further Measures On Stabilisation Of Credit Institutions

The Central Bank and Credit Institutions (Resolution) Act 2011 was signed into law on 20 October 2011. The Act now requires the making of the necessary Commencement Orders by the Minister for Finance.

The Act provides for additional powers for the Central Bank of Ireland. These are intended to achieve an effective and efficient resolution regime for credit institutions including building societies and credit unions that are failing or likely to fail and which is effective in protecting the Exchequer and the stability of the financial system and the economy.

The Act gives the Central Bank power to take control of banks, appoint managers to run them and remove directors, staff and consultants and to move their deposits and loans to other banks. It provides for the establishment of a Credit Institution Resolution Fund which would provide a source of funding for the resolution of financial instability or in an imminent serious threat to the financial stability of an