Central Bank and Credit Institutions (Resolution) Act 2011

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Intervention conditions.

9.— (1) The intervention conditions are fulfilled in relation to an authorised credit institution if—

(a) either condition A or condition B is fulfilled,

(b) conditions C and D are both fulfilled, and

(c) the Bank has consulted the Minister.

(2) Condition A is that the Bank has serious concerns relating to the financial stability of the authorised credit institution concerned and—

(a) directs that credit institution to take particular action to address the Bank’s concerns, and the Bank is satisfied that—

(i) the credit institution has failed to comply fully with the direction under this paragraph, or

(ii) the credit institution is incapable of taking the necessary action to so comply within the period specified by the Bank in that direction,

or

(b) is satisfied that, having regard to the urgency of the situation or for any other reason, its serious concerns cannot be adequately addressed by such a direction.

(3) Condition B is that the Bank is satisfied that there is a present or imminent serious threat to the financial stability of the authorised credit institution concerned or the financial system in the State.

(4) Condition C is that the Bank is satisfied that the authorised credit institution concerned has failed or is likely to fail to meet a regulatory requirement imposed by law or a requirement or condition of its licence or authorisation.

(5) Condition D is that having regard to the purposes of this Act, any guidelines issued by the Bank under section 107 and such of the matters set out in subsection (6) as appear to the Bank to be relevant in the circumstances, the immediate winding-up of the authorised credit institution concerned is not in the public interest.

(6) The matters referred to in subsection (5) are the following:

(a) whether the authorised credit institution concerned is of systemic importance to the economy of the State;

(b) whether the failure of that credit institution would be likely to contribute to instability of the banking system or serious damage to the financial system in, or the economy of, the State;

(c) the importance of ensuring that the depositors of that credit institution will continue to have prompt access to their deposits (whether in that credit institution or elsewhere);

(d) the importance of maintaining public confidence in the financial system in the State;

(e) the importance of maintaining continuity of banking services to that credit institution’s customers;

(f) the terms of any resolution plan for that credit institution;

(g) any other matters that the Bank considers relevant, in the particular circumstances, having regard to its duties and obligations.