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Appendix 4: Terms of Reference of the Banking Inquiry1

  1. The Joint Committee of Inquiry into the Banking Crisis appointed by Order of Dáil Éireann of 14th May, 2014, and Order of Seanad Éireann of 14th May, 2014 shall conduct an inquiry under section 7 of the Houses of the Oireachtas (Inquiries, Privileges and Procedures) Act 2013 (hereinafter referred to as “the 2013 Act”) in accordance with this Terms of Reference Resolution.
  2. The subject matter of the inquiry shall be to inquire into the reasons Ireland experienced a systemic banking crisis, including the political, economic, social, cultural, financial and behavioural factors and policies which impacted on or contributed to the crisis, by investigating relevant matters relating to banking systems and practices, regulatory and supervisory systems and practices, crisis management systems, and policy responses and the preventative reforms implemented in the wake of the crisis.
  3. In conducting the inquiry, the Joint Committee–
    • a) may investigate and scrutinise the actions of banking institutions, and authorities responsible for the supervision of such institutions and for laws on such supervision, as set out in the Schedule to this Resolution; and
    • b) shall have regard to the domestic and international background context for the banking crisis and the inquiry and may inquire into, including, but not limited to, the following:
      1. the findings and recommendations of previous reports into the crisis, whether they have been implemented, and if so, their effectiveness and long-term impact;
      2. relationships between State authorities, political parties, elected representatives, supervisory authorities, banking institutions and the property sector;
      3. reactions to early warnings of the impending crisis, and divergent or contrarian views on the prevailing consensus; and
      4. the role of the media.
  4. The matters which may be covered by the inquiry shall be as specified in Part A of the Schedule to this Resolution.
  5. The categories of persons to which the matters which may be covered by the inquiry relate shall be as specified in Part B of the Schedule to this Resolution.
  6. The time period for the inquiry shall be 1st January, 1992 to 31st December, 2013.
  7. The European Union and other relevant jurisdictions shall be the location for the purposes of the inquiry.
  8. The Joint Committee shall have the power to send for persons, papers and records under [Dáil Standing Order 83(2A)/Seanad Standing Order 71(2A)] and/or pursuant to part 6 of the 2013 Act and in particular, sections 67, 68, 70, 72 and 73 of the said Act.
  9. The Joint Committee may inquire into matters, persons and time periods in addition to those specified in this Resolution, solely and exclusively where such are deemed by the Committee to be directly relevant to the subject matter of the inquiry as set out in paragraphs (2) and (3).
  10. The Joint Committee shall have the powers referred to in section 7(1)(c) and (d)(i) and (ii) of the 2013 Act and any findings of fact made in this Part 2 inquiry may be used in other Part 2 inquiries.
  11. The Joint Committee may make a finding that any matter in relation to systems, practices, procedures or policy or arrangements for the implementation of policy ought to have been carried out in a different manner in accordance with section 17(3) of the 2013 Act.
  12. The Joint Committee may, in accordance with section 17(3)(b) of the 2013 Act, make recommendations arising from any findings of fact, and such recommendations may include recommendations for legislative change and for new legislation.

SCHEDULE

Part A: Matters which may be covered by the inquiry

Conduct, events, activities, circumstances, systems, practices, procedures relating to the following:

Context

1. Findings and recommendations of previous reports on Ireland’s banking crisis.

2. International, EU and domestic policy context, including key findings of reports of international monitoring agencies and also including the role and impact of membership of the Euro.

3. Relationships between State authorities, political parties, elected representatives, supervisory authorities, banking institutions and the property sector.

4. Early warnings, divergent and contrarian views.

5. The role the Euro, including the role Ireland’s membership of the Euro, may have played in the banking crisis and the related matter of the strength of sterling relative to the Euro.

6. The role of the media.

Banking systems and practices

7. Corporate Governance and Business Model.

8. Lending Policy and Credit Control.

9. Risk Management (including Internal Audit, Audit Committees).

10. Funding and Liquidity Management.

11. External Audit Reports and Communications.

12. Board and executive remuneration.

Regulatory and Supervisory systems and practices

13. Structure and conduct of Regulatory and Supervisory Systems.

14. Monitoring and supervision of the Financial Industry, including enforcement.

15. Role of the Central Bank including Financial Stability.

16. Role of the Department of Finance.

17. Role and influence of International Organisations.

18. Role of the Houses of the Oireachtas.

Crisis management systems and policy responses

19. Crisis Management Arrangements in the lead-in to, and following, the Guarantee decision.

20. The Bank Guarantee decision of 30th September, 2008 including the lead up to and the decisions taken regarding its implementation afterwards.

21. Direct policy responses to the crisis, including the National Asset Management Agency, bank nationalisation, recapitalisation, the use of Emergency Liquidity Assistance, the Special Liquidation of IBRC, the issue of promissory notes and the EU-IMF programme of assistance.

22. Legislative and regulatory – national and EU – measures taken since the crisis, particularly in relation to bank resolution and creditor preference.

23. Impact of the banking crisis on bank creditors, including any efforts to achieve burden sharing with creditors and the role and influence of the European Central Bank on the question of burden sharing with creditors.

Part B: Categories of persons to whom the matters at Part A relate

  1. Persons employed by or contracted to–a) credit institutions specified by Order of the Minister for Finance pursuant to section 6 of the Credit Institutions (Financial Support) Act 2008, including but not limited to: Chairpersons, Chief Executives, board members, other relevant executives and advisors;
    b) other credit institutions licensed by the Central Bank to operate within the State, including but not limited to: Chairpersons, Chief Executives, board members, other relevant executives and advisors.
  2. Persons who were the recipients of commercial loans, including for commercial property, from the credit institutions within the scope of this Schedule.
  3. External auditors for credit institutions within the scope of this Schedule.
  4. Central Bank: Governors, Directors, Directors General, Prudential Directors, board members, other relevant officials and advisors.
  5. Irish Financial Services Regulatory Authority/Financial Regulator: Chairpersons, CEOs, members of the Authority, other relevant officials and advisors.
  6. Domestic Standing Group members.
  7. Cabinet: Members of Cabinet, Attorneys General, and advisors to Government.
  8. Department of the Taoiseach: Secretaries General, relevant Assistant Secretaries, other relevant officials and special advisors.
  9. Department of Finance: Secretaries General, Second Secretaries, relevant Assistant Secretaries, other relevant officials and special advisors.
  10. Members of the Houses of the Oireachtas, members of the European Parliament and members of Local Authorities.
  11. Political Parties: General Secretaries, Officers at National level and other relevant officials.
  12. European Central Bank: President and relevant officials.
  13. ECOFIN and constituent bodies, including but not limited to, the Economic and Financial Committee.
  14. Relevant persons employed by or contracted to the European Commission.
  15. Relevant persons within special purpose mechanisms to deal with the crisis at European Union level, including but not limited to the European Financial Stability Facility (EFSF) and the European Stability Mechanism (ESM).
  16. Relevant persons employed by or contracted to the International Monetary Fund.
  17. National Asset Management Agency: Chairperson, Chief Executive and other relevant officials.
  18. National Treasury Management Agency: Chief Executive and other relevant officials.
  19. National Pension Reserve Fund: Chief Executive and other relevant officials.
  20. Persons who expressed divergent or contrarian views, including but not limited to persons employed by or contracted to the credit institutions within the scope of this Schedule, the Central Bank, the Irish Financial Services Regulatory Authority/Financial Regulator and the Department of Finance.
  21. Media: Senior Editors, Board Members and Financial Controllers in media organisations.
  22. Junior and Senior Bond-holders of credit institutions within the scope of this Schedule.
  23. Any other relevant persons solely and exclusively where such persons are deemed by the Joint Committee to be directly relevant to the subject matter of the inquiry.

Appendix 04 Footnotes

1. as agreed by Dáil Éireann on 25 November 2014 and Seanad Éireann on 26 November 2014.

 


Appendix 5: Public Hearings Witness Lists


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