Former Financial Regulator Patrick Neary to appear before Banking Inquiry

27/05/2015

Former Chief Executive Officer of the Irish Financial Services Regulatory Authority Patrick Neary will appear before the Oireachtas Banking Inquiry as part of its Nexus Phase public hearings tomorrow, Thursday 28th May 2015.

During the Nexus Phase the Committee is engaging with institutions and individuals who had roles relating to the crisis. It is focusing on three broad elements — Banking Systems & Practices; Regulatory and Supervisory Systems & Practices; and Crisis management systems and policy responses — and how these three elements interacted with each other.

Chairman Ciaran Lynch TD said: “Tomorrow we will continue our hearings on the role of the Central Bank and Financial Regulator. Among the issues we will be addressing with Patrick Neary relating to his role in the Central Bank and as the Chief Executive Officer of the Irish Financial Services Regulatory Authority are: the appropriateness of the regulatory regime; the effectiveness and appropriateness of the supervision policy and powers; 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 adequacy of the assessment and communication of both solvency and liquidity risks in the banking institutions and sector; and the awareness and clarity of roles and accountability amongst the regulatory and supervisory institutions of the state.

“Other lines of inquiry include: 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; and the appropriateness of the expert advice sought, quality of analysis of the advice and how effectively this advice was used.

“Mr Neary will also be asked to give evidence on the impact of the reliance placed upon information and reporting from statutory auditors of the banks; an analysis and consideration of the response to contrarian views, both internal and external; 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 adequacy of the DSG process, including a consideration of the bank resolution legislation; the liquidity versus solvency debate; and the appropriateness of the bank guarantee decision.”

Nexus Phase hearings will run until the middle of September with a total of 64 public hearings planned. It is envisaged that at least 60 witnesses will be called to the public hearings.

Deputy Lynch said: “This phase of our hearings includes a move by the Committee to compelling witnesses and statements and the use of evidence. Under the witness management protocol, there will be a structured witness engagement with a seven week lead-in between the notification and the public hearing. The protocol includes timescales, evidence books and technical briefings.”

This meeting will start at 9.30am in Committee Room 1, Leinster House. Full committee proceedings will be webcast live on this website, while Oireachtas TV will broadcast proceedings from 9.30am-6pm.

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