The Oireachtas Banking Inquiry will continue its hearings when it will meet with David Begg, John Dunne, Fergus Murphy, Sean Mulryan and Michael O’Flynn tomorrow, Wednesday, 22nd July.
The schedule for the meeting in Committee Room 1, Leinster House is:
Session 1: 9.30 a.m. – 11.15 a.m.
David Begg, former General Secretary ICTU & Non-Executive Director Central Bank & CBFSAI
John Dunne, Director General IBEC & former Non-Executive Director Central Bank & IFSRA
Session 2: 11.30 a.m. – 1.15 p.m.
Fergus Murphy, former Group Chief Executive Officer, EBS
Session 3: 2.30 p.m. – 4.30 p.m.
Sean Mulryan, Founder, Ballymore Homes
Session 4: 4.30 p.m. – 6.15 p.m.
Michael O’Flynn, Founder, O’Flynn Construction Group
Chairman Ciaran Lynch TD said: “At tomorrow morning’s hearing, our witnesses are David Begg, former General Secretary of ICTU and Non-Executive Director of the Central Bank and John Dunne, Director General IBEC and Non-Executive Director Central Bank and IFSRA. The session will focus on our witnesses respective roles with ICTU and IBEC and as Non-Executive Directors of the Central Bank and Financial Regulator.
“David Begg was General Secretary of the Irish Congress of Trade Unions from 2001 to 2015. He was also a Non-Executive Director of the Central bank from 1995 to 2010. He is being asked to give evidence on the following lines of inquiry: the appropriateness of the regulatory regime; the effectiveness and appropriateness of the supervision policy and powers; the ppropriateness of the macro-economic and prudential policy; the effectiveness of the use of supervisory powers; and the nature and effectiveness of the operational implementation of the macro-economic and prudential policy
“He will also be questioned on: the awareness and clarity of roles and accountability amongst the regulatory and supervisory institutions of the state; the nature and appropriateness of the relationship between the Central Bank including the Financial Regulator, the Department of Finance and the banking institutions; the appropriateness of the expert advice sought, quality of analysis of the advice and how effectively this advice was used; the appropriateness of the relationships between Government, the Oireachtas, the banking sector and the property sector; the adequacy and impact of international organisations’ oversight on banking regulation and supervision activity; and an assessment of what has been done, work-in-progress and what remains outstanding from the recommendations of previous reports
“Other issues of interest to the Committee are: the cost of the crisis and sharing of the impact; the role and influence of the ECB; and the options for burden sharing during the period 2008-2013.
“John Dunne was Director General of IBEC from 1992 to 2000 and Chairman of the IDA from 2001 to 2010. He was also a Non-Executive Director the Central Bank and IFSRA from 2003 to 2010. Among the lines of inquiry the Committee will address with Mr Dunne are: the cost of the crisis and sharing of the impact; the role and influence of the ECB; the options for burden sharing during the period 2008-2013; the appropriateness of the macro-economic and prudential policy; the nature and effectiveness of the operational implementation of the macro-economic and prudential policy; the appropriateness of the expert advice sought, quality of analysis of the advice and how effectively this advice was used; the appropriateness of the relationships between Government, the Oireachtas, the banking sector and the property sector; and assessment of what has been done, work-in-progress and what remains outstanding from the recommendations of previous reports
“Later in the morning, we will continue our hearings with Fergus Murphy, former Group Chief Executive Officer at EBS. Fergus Murphy was Group Chief Executive Officer at EBS from January 2008 to 2011. He previously held senior positions at ACCBank and Rabobank. Mr Murphy is now the Director of Corporate and Institutional Banking within the AIB Group.
“Fergus Murphy will be questioned on a number of lines of inquiry, including: the composition, skills and experience of the board and board subcommittees; the quality of the business model setting process; the adequacy of board oversight over internal controls to ensure risk is properly identified, managed and monitored; the appropriateness of property-related lending strategies and risk appetite; the appropriateness of credit policies, delegated authorities and exception management; an analysis of risk concentrations in the base, the adverse economic scenarios and the impact on capital structure; the appropriateness of funding sources — the mix, maturity profile and cost; the capital structure and loss absorption capacity; and the adequacy of the incentive and remuneration arrangements to promote sound risk governance.
“Mr Murphy will also be questioned on: the liquidity versus solvency debate; the appropriateness of the bank guarantee decision; the decision to recapitalise Anglo, AIB, Bank of Ireland, EBS, Permanent TSB and the alternatives available and/or considered; the Credit Institutions Stabilisation Act (2010) and the effectiveness of the actions to merge AIB and EBS, Anglo and INBS and deposit transfers; and the nature and appropriateness of the relationship between the Central Bank including the Financial Regulator, Department of Finance and the banking institutions.
“At the following sessions we will hear from Sean Mulryan, Founder, Ballymore Homes, and Michael O’Flynn, Founder, O’Flynn Construction Group, as part of the module in which the Inquiry will focus on the relationships between the property development companies and their principal financial institutions.
“Sean Mulryan is an Irish property developer, and the founder and chairman of the Ballymore Group, a Dublin-based international property development company. Since its foundation in 1982
Ballymore grew into one of Ireland’s largest home builders. Ballymore also sought opportunities outside Ireland and is now established as one of the top developers in London.
“Michael O’ Flynn founded O’ Flynn Construction in 1978. The O’ Flynn Group operates a number of businesses in Ireland, the UK and mainland Europe. The Group’s activities cover property investment, development, construction and the provision of student accommodation. The Group, as well as his personal borrowings, have now exited from NAMA.
“They are being directed to attend the Inquiry to provide an overview of the relationship between company and its principal financial institutions, referring, in particular, to the processes behind loan applications, monitoring and oversight of loans by those institutions, a description and assessment of how multi-bank lending in respect of his company was managed and a description and assessment of the business models supporting the expansion of his business in the years leading up to the banking crisis. The Inquiry is also interested in finding out at first hand the impact of the crash on the property sector.”
Further information on the Oireachtas Banking Inquiry can be accessed on this website. Full committee proceedings will be webcast live on this website while Oireachtas TV will broadcast proceedings from 9.30am-6pm.
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Ciarán Lynch (Chairman)
John Paul Phelan
Sean D Barrett