NTMA completes transfer of deposit books and assets of Anglo Irish Bank
24th February 2011 – The National Treasury Management Agency (NTMA) has today completed an important step in the longer term restructuring of the Irish banking sector with the transfer of the deposit books and certain matching assets of Anglo Irish Bank (Anglo) and Irish Nationwide Building Society (INBS).
The Irish High Court ordered the transfer of deposits and matching assets from Anglo to Allied Irish Banks plc (AIB) and from INBS to Irish Life & Permanent plc (IL&P) at a special hearing this evening (Thursday). This concludes the transfer process which began following a direction order from the High Court on 8th February under the Credit Institutions (Stabilisation) Act 2010.
An NTMA spokesman said: “We are very pleased with the outcome of this process. It was encouraging to see domestic and international interest in the transaction and we believe the transfers represent an important step forward in terms of the longer term restructuring of the Irish banking sector.”
The transfer of the respective deposit books is part of the restructuring of the two institutions which is in accordance with the provisions of the European Union/International Monetary Fund Programme of Financial Support for Ireland.
Depositors and Employees
Deposits have transferred automatically and no action is required of depositors, who continue to have access to their funds. The terms and conditions applicable to these deposits prior to the transfer will be fully honoured by both AIB and IL&P.
Transferred deposits also continue to retain the same level of protection under both the Deposit Guarantee Scheme in respect of amounts up to €100,000 per depositor, per institution and the Eligible Liabilities Guarantee Scheme in respect of amounts over €100,000. UK deposits will retain the protection of the ELG and will be covered under the terms of the UK Financial Services Compensation Scheme. This provides eligible customers a guarantee of up to a maximum of £85,000. Isle of Man deposits will also retain the protection of the ELG and the Isle of Man subsidiaries will continue to be participants in the Isle of Man Depositors’ Compensation Scheme as set out in the Depositors’ Compensation Regulations 2010.
Certain employees associated with the deposits have transferred to the acquiring institutions with their terms and conditions of employment safeguarded in accordance with applicable employment legislation. Some 237 staff will transfer to IL&P and 210 staff will transfer to AIB.