Oct 1 (Reuters) - Ireland will on Wednesday debate emergency legislation to guarantee Irish bank deposits in a radical move aimed at shoring up the domestic financial system.
Here are some details of the Credit Institutions (Financial Support) Bill 2008:
-- The bill will enable the government to guarantee the liabilities of six Irish-owned banks -- totalling some 400 billion euros ($565 billion) -- until Sept. 29, 2010. The banks’ total assets exceed their guaranteed liabilities by around 80 billion.
-- The bill gives the state the power to take a stake in any of the banks covered by the scheme. “The (finance) minister may subscribe for shares and other securities in a credit institution on such terms as he sees fit,” it states.
-- Conditions attaching to financial support may include ones “to regulate the competitive behaviour of the credit institution or subsidiary”.
-- The bill gives the finance minister the power to set aside competition law to allow bank mergers if deemed necessary to protect the stability of the financial system
-- The guarantee applies to Allied Irish Bank ALBK.I, Bank of Ireland BKIR.I, Anglo Irish Bank ANGL.I, Irish Life and Permanent IPM.I, including permanent tsb bank, Irish Nationwide Building Society and the Educational Building Society (Reporting by Kevin Smith; Editing by Paul Bolding)
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