The Minister for Finance Paschal Donohoe has said the government is to advertise for State nominees to sit on the boards of the Irish banks.

The State currently has no directors on the boards of any of the Irish banks.

Speaking at the Finance Committee today, Minister Donohoe said that none of the directors would be former Oireachtas members.

The appointees would also have to be approved by bank regulators in Frankfurt, the Minister added.

The appointments will be made to AIB, Bank of Ireland and Permanent TSB.

Mr Donohoe also told the Finance Committee that 33,700 customers have been identified as being impacted by the tracker mortgage issue.

Since the Central Bank started its industry wide examination, it has published a series of update reports, the latest of which was published in December 20.

"That latest update indicated that approximately 26,600 customers have been identified as having been impacted pursuant to the industry wide examination.

"This is an increase of 13,600 on the position as outlined in the earlier October update," Mr Donohoe said.

"The acceptance of further impacted tracker mortgage accounts by lenders, such as the 6,000 additional impacted accounts accepted by Bank of Ireland in November, is proof that the Central Bank's strategy of continuously challenging lenders is having important benefits for consumers," he said.

"In total circa 33,700 customers have now been identified as being impacted owing to tracker mortgage failings.

"This includes the 7,100 impacted tracker borrowers that were identified prior to the commencement of the industry wide examination," he added. 

Mr Donohoe said the Central Bank now believes that the vast majority of impacted tracker customers have been identified but it will continue to review lenders. 

He said that by the end of December, about €250m in redress and compensation had been paid to 12,900 impacted customers as identified from the industry wide examination.

This includes payments to 3,700 impacted accounts identified since last September.

The Minister said this is additional to €47m in compensation and redress which was paid for impacted cases identified before the start of the Central Bank's industry wide examination.
 
Fianna Fáil's finance spokesperson Michael McGrath asked about when every customer affected by the scandal will be appropriately repaid and compensated.

The Minister said that he wants everyone to be given redress and compensation as soon as possible, and said he will evaluate if commitments given by the lenders have been met when he looks at the next report from the Central Bank due in March.

Deputy McGrath also asked if there will be any individual accountability for people after what happened, adding whether the Minister believed the issue was a "coincidence or accident".

Minister Donohoe said he cannot prejudice the ruling or findings that the Central Bank will make. 

He said that he believes that there was a collective failing of the banks and their behaviour was "appalling".

The Central Bank have the power to sanction individuals, he added.