Ireland's Central Bank now seeking EU partner to help manage guarantee scheme
The Republic's Central Bank is preparing to appoint a partner to help manage its deposit guarantee scheme as the UK prepares to leave the European Union.
Some elements of the scheme have been managed by a UK firm, but all bank data transferred to a service provider in relation to the scheme must remain in the EU.
Last year the Central Bank, which is led by Governor Philip Lane, sounded out potential partners via a request for technical dialogue.
That sought to help the Central Bank consider and assess options available to it, and to secure feedback from the market. It has now decided to proceed with a full tender for administering the service in the event of a bank crash.
In the event of a liquidator being appointed to a covered credit institution, the Central Bank is obliged to pay compensation up to €100,000 per person per institution to depositors who are deemed eligible under the rules of the scheme within specified deadlines.
The covered credit institutions include banks such as AIB, Bank of Ireland, KBC Ireland and Permanent TSB, but also less well known entities such as UniCredit Bank Ireland, Depfa Bank and Dell Bank International.
While credit unions are covered under the deposit guarantee scheme, they are not part of the outsourcing process for which the Central Bank is currently seeking tenders.
The process has also begun to find a successor to Philip Lane.