The Oireachtas Banking Inquiry will continue its hearings when it will meet with Alan Merriman, Ethna Tinney, Mary Harney, John Gormley and Fidelma Clarke tomorrow, Wednesday 29th July.
The schedule for the meeting in Committee Room 1, Leinster House is:
Session 1: 9.30 am – 11.15 am
Alan Merriman, former Finance Director, EBS
Session 2: 11.30 am – 1.15 pm
Ethna Tinney, former Independent Non-Executive Director, EBS
Session 3: 2.30 pm – 4.15 pm
Mary Harney, former Tánaiste and Leader of the Progressive Democrats
John Gormley, former Government Minister and Leader of the Green Party
Session 4: 4.30 pm – 6.15 pm
Fidelma Clarke former Chief Risk Officer, EBS
Chairman Ciaran Lynch TD said: “At tomorrow morning’s session we will hear from Alan Merriman, former Finance Director at EBS. Alan Merriman joined the Society in July 2005 where he was Finance director until 2009. Previously he worked with PricewaterhouseCoopers, where he was a partner. Mr Merriman is now the Principal at Elkstone Private Advisors Ltd.
“He is being directed to attend the Inquiry to provide evidence along the following lines of inquiry: The integrity of financial reporting; the appropriateness of property-related lending strategies and risk appetite; the appropriateness of credit policies, delegated authorities and exception management; analysis of risk concentrations in the base, the adverse economic scenarios and the impact on capital structure; an analysis of liquidity risks under adverse scenarios; and capital structure and loss absorption capacity.
“Other lines of inquiry include: the effectiveness of internal audit oversight and communication of issues related to governance, property-related lending strategies and risks, and funding and liquidity risks; the effectiveness of the oversight of the prevailing risk culture; the impact of prevailing accounting standards in recognising risks; 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; and the nature and appropriateness of the relationship between the Central Bank including the Financial Regulator, the Department of Finance and the banking institutions.”
“We will continue our hearings with Ethna Tinney, former Independent Non-Executive Director, EBS. Appointed Non-Executive Director in 2000 and again in 2008, Ethna Tinney was a producer with RTÉ Lyric FM. In 2007 the board of EBS decided not to approve her nomination for re-election and she lost her Directorship. At the AGM the following year members of the Society elected her as a Non-Executive Director until 2011.
“Ethna Tinney will give evidence on the following lines of inquiry: 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; the adequacy of the incentive and remuneration arrangements to promote sound risk governance; the appropriateness of the bank guarantee decision; an analysis and consideration of the response to contrarian views, both internal and external; and the appropriateness of the relationships between Government, the Oireachtas, the banking sector and the property sector
“In the afternoon we will continue hearings with senior members of the Government who had key roles in the run-up to the Crisis period. At this afternoons session we will hear from Mary Harney, former Tánaiste and Leader of the Progressive Democrats and John Gormley, former Environment Minister and Leader of the Green Party.
“Mary Harney was a member of the Dáil from 1981 to 2011. She held several senior posts in government and was Tánaiste from June 1997 to September 2006. She was leader of the Progressive Democrats party between 1993 and 2006 and again from 2007 to 2008. John Gormley was a member of the Dáil from June 1997 to February 2011 and was Minister for the Environment during that time. He was leader of the Green Party from July 2007 to May 2011.
“Both Ms Harney and Mr Gormley are being asked to give evidence on a number of lines of inquiry including: the role of advisors in analysing the crisis, including crisis management options; an appraisal of the conditions prior to increasing the Deposit Guarantee Scheme; the appropriateness of the bank guarantee decision; the decision to nationalise Anglo in 2009 and a review of the alternatives available and/or considered; 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.
“They will also be questioned on: the role and influence of the ECB; 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; an analysis and consideration of the response to contrarian views both internal and external; the effectiveness of the Oireachtas in scrutinising public policy on the banking sector and the economy; the appropriateness of the advice from the Department of Finance to Government and the use thereof by Government; an analysis of the key drivers for budget policy; and the appropriateness of the relationships between Government, the Oireachtas, the banking sector and the property sector.
“Later in the afternoon we continue our hearings with senior figures from EBS when we will hear from Fidelma Clarke former Chief Risk Officer at EBS. Fidelma Clarke was Chief Risk Officer of EBS Building Society from 2009 to 2012. Prior to this she was Company Secretary and held a number of roles in the society in Risk, Credit Policy and Customer Service. She joined AIB in December 2011 and is currently Head of Risk Analytics reporting to the Group Chief Risk Officer. In 2012 Ms Clarke was appointed a non-executive director of EBS Limited.
“Our meeting with Fidelma Clarke will focus on a number of lines of inquiry including: 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; an analysis of liquidity risks under adverse scenarios; interest rate risk appetite setting and monitoring; capital structure and loss absorption capacity; the adequacy of the valuation policies and assumptions to accurately assess loan security; the adequacy of internal controls over perfection of security and policy exceptions; the appropriateness of the bank guarantee decision; and the decision to recapitalise Anglo, AIB, Bank of Ireland, EBS, Permanent TSB and the alternatives available and/or considered.”
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 9.30-8pm.
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Ciarán Lynch (Chairman)
John Paul Phelan
Sean D Barrett