Lenihan spells out role of NTMA

THE Minister for Finance, Brian Lenihan announced last night that the National Treasury Management Agency (NTMA) will assume virtual day-to-day control in dealing with the ongoing banking crisis.

In a statement the minister said the NTMA will assume virtual responsibility for dealing with most of the key issues facing the banks which will be in addition to its overall responsibility for the management of the new National Asset management Agency (NAMA) – the bad bank.

The minister said the agency is responsible for:

* Discussions with the covered institutions on their capital needs.

* Discussions with financial institutions on realignment or restructuring within the banking sector.

* The management of the minister’s shareholding in the credit institutions.

* Responsibility for some remaining functions under the guarantee schemes – to be decided.

It will also be responsible for giving advice on banking matters generally including issues relating to crisis prevention, management and resolution, he said. These new functions will be carried out on behalf of the minister in consultation with him and his officials, he said.

Implementation of these arrangements will require some phasing in, during which time NTMA will adjust its resources to deal with the new work, the statement said.

The Minister for Finance will continue to be fully responsible and accountable to the Oireachtas.

In a personal comment the minister said the changes reflect the fact that NAMA is now a legal entity under the control of the NTMA.

“The Department ofFinance will necessarily remain closely involved with banking and financial services issues,” he said.