Central Bank Governor to appear before the Banking Inquiry

24/06/2015

The Oireachtas Banking Inquiry will continue hearings on the role of the Central Bank and Financial Regulator tomorrow, Thursday, 25th June when it will hear from Central Bank Governor Patrick Honohan.

The engagement with Governor Honohan will take place over two sessions and the schedule for the meeting in Committee Room 1, Leinster House is:

Session 1: 9.30 am – 1pm

Session 2: 2.30 am – 6 pm
Chairman Ciaran Lynch TD said: “When Governor Honohan appeared before this Inquiry earlier this year, the purpose was specifically to discuss his report on the banking Crisis. In tomorrow morning’s session we will focus on the period of Professor Honohan’s tenure from his appointment in September 2009 to October 2010 while the afternoon session will focus on developments in the period from November 2010 to December 2013

Tomorrow, he will be asked to give evidence on the appropriateness of the regulatory regime; the effectiveness and appropriateness of the supervision policy and powers; the appropriateness of the macro-economic and prudential policy; the composition, skills, experience and number of resources at the Central Bank, Financial Regulator and Department of Finance; the effectiveness of the use of supervisory powers; the nature and effectiveness of the operational implementation of the macro-economic and prudential policy; the adequacy of the assessment and communication of both solvency and liquidity risks in the banking institutions and sector; 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), Department of Finance and the banking institutions; the effectiveness of the communication between the Central Bank and the Department of Finance; an analysis and consideration of the response to contrarian views, both internal and external; the adequacy and impact of international organisations’ oversight on banking regulation and supervision activity; and the quality and effectiveness of European policies and regulations.

“Other lines of inquiry include: an assessment of what has been done, work-in-progress and what remains outstanding from the recommendations of previous reports ; an assessment of whether further changes are required; the effectiveness of the current regulatory and supervisory structure; 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 and the effectiveness of the actions to merge AIB and EBS, Anglo and INBS and deposit transfers; the cost of the crisis and sharing of the impact; the EU/IMF/ECB programme of assistance; Basel III and the impact on capital and liquidity of Irish banks; Banking Union; the role and influence of the ECB; and the options for burden sharing during the period 2008-2013.

Other areas of interest include: the composition, skills and experience of the board and board subcommittees; the appropriateness of property-related lending strategies and risk appetite; an analysis of liquidity risks under adverse scenarios; capital structure and loss absorption capacity; and the effectiveness of the external audit processes to identify and report to the board and management, any concerns related to significant risk exposures, including property, funding and liquidity.”

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 2pm-5pm.

Committee proceedings can also be viewed on the move, through the Houses of the Oireachtas Smartphone App, available for Apple and Android devices.

All media enquiries in relation to the Oireachtas Banking Inquiry should be addressed to:

Ciaran Brennan,
Houses of the Oireachtas,
Communications Unit,
Leinster House,
Dublin 2

P: +3531 618 3903
M: 086-0496518
F: +3531 618 4551

All general enquiries should be directed to the Committee Secretariat.

e. contactbankinquiry@oireachtas.ie
t. +353 1 618 3651

Committee Membership

Deputies

Ciarán Lynch (Chairman)
Pearse Doherty
Joe Higgins
Michael McGrath
Eoghan Murphy
Kieran O’Donnell
John Paul Phelan

Senators

Sean D Barrett
Michael D’Arcy
Marc MacSharry
Susan O’Keeffe