Under the legislation introducing the Government Guarantee Scheme, the Financial Regulator has a number of specific new responsibilities, which we must carry out in consultation with the Minister for Finance.
These are to impose conditions regulating the commercial conduct of a covered institution’s business, having regard to capital ratios, market share and balance sheet growth, in order to minimise any potential competitive distortion that may otherwise arise and to avoid any abuse of the guarantee.
To meet these responsibilities, the Financial Regulator has set up a new supervisory unit whose role is to define, impose and monitor conditions and targets under the Government Guarantee Scheme.
As part of its remit, the Financial Regulator, on behalf of the Minister for Finance shall:
- Require reports provided by a covered institution to be accompanied by a further report by an independent auditor.
- Require such other reports, to monitor compliance with the terms and conditions of the Scheme, as the Minister considers necessary.
- Submit reports to the Minister on the compliance by covered institutions with the terms and conditions of the scheme.
- Monitor the operation of the scheme and report regularly to the Minister.
The Chief Executive and Chairman of each Credit Institution covered under the Guarantee Scheme must report quarterly to the Financial Regulator, on behalf of the Minster for Finance, regarding the institution’s overall compliance with the scheme.
View the list of Credit Institutions covered under the Government Guarantee Scheme
Information on the legislation relating to the Government Guarantee Scheme, and a list of Frequently Asked Questions is available on the Department of Finance Website.