Department outlines banks relationships
Minister for Finance Michael Noonan won’t intervene in the day-to-day management and commercial activities of the State’s four guaranteed banks, according to agreements that also cover lending decisions.
So-called relationship frameworks between the finance ministry and AIB, Bank of Ireland, Irish Life Permanent and Irish Bank Resolution Corp, dated March 30th, were posted on the ministry’s website yesterday.
Senior management from the lenders must, however, meet ministry officials on a monthly basis to discuss their respective business plans, and highlight any material developments or trends, according to the agreements.
Under the framework agreements, it is stated AIB must give advance notice to the Minister for Finance if it intends to appoint advisers who are reasonably expected to be paid more than €5 million. In the case of Irish Life Permanent, the figure is €2.5 million.
Under the agreement with Irish Bank Resolution Corporation, representatives of the Minister may attend board meetings from time to time in a passive “observer” capacity.