Banking Update - Extension Of The Credit Institutions (Stabilisation) Act 2010

Emergency banking legislation that was introduced two years ago to give the Irish Minister for Finance extensive powers in the restructuring and recapitalisation of banks has been extended.

The Credit Institutions (Stabilisation) Act 2010, which was due to expire at the end of last year has been extended until the end of 2014, by resolutions of both houses of the Oireachtas (the National Parliament) passed last month. 

This means that the Minister for Finance will continue to have the extensive range of restructuring powers granted under the Act with respect to "relevant institutions" which include each of the banks which have received financial support from the State such as Allied Irish Banks, plc ("AIB") and The Governor and Company of the Bank of Ireland and certain other credit institutions such as credit unions and building societies ("Relevant Institutions").