THE BANKS should be able to determine what additional capital they will need in the first quarter of next year after they transfer their largest development loans to the National Asset Management Agency (Nama), according to the Department of Finance.

The department expects the first loans, linked to the 10 largest borrowers, to move to Nama at the start of February and the transfer of all Nama-bound loans to be completed by the end of July 2010.

Once the loans of the larger borrowers are moved to Nama in the first three months of next year the banks should be able to determine accurately the discount to be applied across all Nama loans, according to department sources.

Financial institutions have 60 days from last Monday to apply to participate in the Nama plan.

The Minister for Finance Brian Lenihan set last Monday as the “establishment date” for Nama under the legislation.

Regulations governing the valuations on the loans had been established, the Minister said.

Financial institutions had transferred details of their valuations of assets connected to the top 10 borrowers by a deadline set last Friday, though some lenders were still providing details this week.

The larger banks had introduced the methodology used to value loans created by Nama’s investment banking advisers, HSBC, within their own systems, which should speed up the processing of other Nama loans, according to the department.

The Minister said that restructuring plans submitted by AIB, Bank of Ireland and Anglo Irish Bank to the European Commission under state aid rules had received a “positive response” and that “an expedited process was under way” to assess them.

The setting of Nama’s “establishment date” under the legislation coincided with the announcement of the board appointees.

Mr Lenihan yesterday named Frank Daly, the former chairman of the Revenue Commissioners, as chairman of Nama. He said he had approached Mr Daly for the job.

He appointed five other board members - financial consultant Eilish Finan, former banker Michael Connolly, accountant Peter Stewart, insolvency specialist Brian McEnery and former Fingal county manager Willie Soffe.

Steven Seelig, an adviser at the International Monetary Fund (IMF) in the US, will join the board next May when he retires from the IMF.

Brendan McDonagh, who was confirmed as Nama chief executive yesterday, and chief executive of the National Treasury Management Agency, John Corrigan, take the last two positions on the Nama board as ex-officio members.

The Minister said the board was not dominated by individuals with a background in banking. Three are chartered accountants.

He said that Nama would set up advisory committees on planning and Northern Ireland in addition to audit, risk, credit and finance subcommittees.

The agency can appoint external candidates to the two advisory committees as well as the audit subcommittee.

Steven Seelig

An expert in financial restructuring and fixing insolvent banks, Mr Seelig is an adviser at the International Monetary Fund in the US.

Mr Seelig carries out economic and financial analyses of countries as a member of the IMF review team on Ireland, Germany and Estonia. He visited Ireland earlier this year for the IMF’s Article IV review of the State’s finances and banking system. He has also informally advised Government officials on Nama and reviewed the draft legislation establishing the agency during the summer.

Mr Seelig has worked on financial bailouts in Uruguay, Indonesia and Georgia, and was a divisional director of the Federal Deposit Insurance Corporation, a US government banking regulator which manages failed banks.

Willie Soffe

Willie Soffe sat with Nama board chairman, Frank Daly, on the commission on taxation, which reported to Government recently, and was subsequently criticised for the level of fees paid to its members.

Mr Soffe is now chairman of the Dublin Transportation Office, which is charged with developing an integrated transport system for sprawling greater Dublin area.

He is from Clare but spent most of his career working for local government. He was county manager in Fingal, the fastest growing of Dublin’s four regional authority areas. He advocated greater housing density as a means of halting Dublin’s growth and preserving its green areas.

Eilish Finan

An independent consultant and director in the financial services industry, Ms Finan is a former chief financial officer of AIG Global Investments, a qualified accountant and electronic engineer. She is a fellow of the Institute of Chartered Accountants in Ireland. She is the only female member of the Nama board.

Brian McEnery

Brian McEnery is a former president of the Association of Chartered Certified Accountants and is a senior partner with Limerick-based accountancy firm Horwath Bastow Charleton, where he specialises in corporate finance and insolvency.

Five years ago McEnery successfully managed the examinership of Lyons Excavations.

He has also worked on liquidations and has particular expertise in dealing with the process whereby the Office of the Director of Corporate Enforcement supervises insolvencies.

Michael Connolly

A former member of Bank of Ireland’s senior management team, Mr Connolly is a member of the Financial Services Ombudsman Council and a managing director of Connolly Management Services, a banking consultancy.

The Department of Finance said that he had “extensive banking experience through all echelons of a large internationally diversified bank”. He has held advisory roles at ACCBank, Bank of Ireland and Anglo Irish Bank since it was nationalised last January.

Mr Lenihan said that Mr Connolly had not directly worked in banking for many years.

Frank Daly – chairman

As chairman of the Revenue Commissioners from 2002 to 2008, Frank Daly led a widespread restructuring of the State’s tax authority and spearheaded special investigations into offshore assets and lump-sum investment policies.

More recently, Mr Daly has served as Government-appointed director on Anglo Irish Bank representing the public interest on the bank’s board. He was appointed to the Anglo board last December under the terms of the State bank guarantee and remained a director of the bank after it was nationalised in January.

Mr Daly chaired the Commission on Taxation, which recommended sweeping changes to the tax system to the Government.

Mr Lenihan said he approached Mr Daly to become chairman of Nama as he had “a comprehensive knowledge” of Ireland and Irish affairs. The role is not a full-time position, but Mr Daly will devote a considerable amount of time to the role, the Minister said.