The Oireachtas Banking Inquiry will continue hearings with senior officials from the Department of Finance who had key roles during the Crisis period tomorrow, Thursday, 18th June when it will hear from Kevin Cardiff, Derek Moran and John Moran.
The schedule for the meeting in Committee Room 1, Leinster House is:
Session 1: 9.30 am – 1 pm
Kevin Cardiff, former Secretary General, Department of Finance
Session 2: 2.30 pm – 6 pm
John Moran, former Secretary General, Department of Finance
Derek Moran, current Secretary General, Department of Finance
Chairman Ciaran Lynch TD said: “Tomorrow we continue our hearings with senior officials from the Department of Finance who had key roles during the Crisis period. At tomorrow morning’s session we will hear from Kevin Cardiff, former Secretary General, Department of Finance. This session will focus on developments up to and including the bank guarantee.
“Kevin Cardiff was Secretary General at the Department of Finance from 2010 to 2012. He joined the Department in 1984 and had a number of roles in the Department, including responsibility for the Taxation and Financial Services Division and Tax policy. In March 2012 he was nominated as Ireland’s representative at the European Court of Auditors in Luxembourg for a 6-year period.
“Mr Cardiff will be asked to give evidence on a number of issues, including: the formulation and reaction to crisis simulation exercises; the role, responsibilities and objectives of the Domestic Standing Group, the adequacy of the DSG process, including a consideration of the bank resolution legislation; the role of advisors in analysing the crisis including crisis management options; the liquidity versus solvency debate; an appraisal of the conditions prior to increasing the Deposit Guarantee Scheme; the appropriateness of the bank guarantee decision; and the effectiveness of reviews of banks’ loan books and capital adequacy.
“Other lines of inquiry the Committee will address with Mr Cardiff are: the decision to nationalise Anglo in 2009 and a review of the alternatives available and/or considered; the establishment, operation and effectiveness of National Asset Management Agency; the decision to recapitalise Anglo, Allied Irish Banks, Bank of Ireland, Educational Building Society, 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; the EU/IMF/ECB programme of assistance; the Fiscal Compact Treaty and the Sovereign Debt Restructuring Mechanism; the role and influence of the ECB; and options for burden sharing during the period 2008-2013.
“Among other issues which may be raised are: the composition, skills, experience and number of resources at the Central Bank, Financial Regulator and Department of Finance; 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 appropriateness of the expert advice sought, quality of analysis of the advice and how effectively this advice was used; 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.
“At our first session in the afternoon we will hear from John Moran, former Secretary General, Department of Finance. John Moran was Secretary General in the Department of Finance from March 2012 to May 2014. Prior to that appointment he served as Second Secretary General in the Department of Finance where he was Head of the Banking Division. He had previously worked as Head of Wholesale Banking Supervision in the Central Bank of Ireland and as CEO and Board Member of Zurich Capital Markets.
“In tomorrow afternoon’s second session we will hear from Derek Moran, current Secretary General at the Department of Finance. Derek Moran has worked in Department of Finance since 1989. From July 2003 to July 2014 he was an Assistant Secretary in the Department where his responsibilities included the Budget & Economic Division, the Tax Policy Division, the Fiscal Policy Division and Human Resources. He was appointed to the role of Secretary General in July 2014.
“Among the lines of inquiry we will consider with John Moran and Derek Moran are: 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, the Department of Finance and the banking institutions; the effectiveness of the communication between the Central Bank and the Department of Finance.
“Other issues of interest include: the appropriateness of the expert advice sought, quality of analysis of the advice and how effectively this advice was used; 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 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; 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 the quality and effectiveness of European policies and regulations.
“John Moran will be asked to give evidence on: the cost of the crisis and sharing of the impact; the liquidation of Irish Banking Resolution Company (IBRC ), the promissory notes refinancing and the relationships with the ECB; Basel III and the impact on capital and liquidity of Irish banks; the options for burden sharing during the period 2008-2013; the role of the euro zone and international partners in this decision; and an assessment of what has been done, work-in-progress and what remains outstanding from the recommendations of previous reports
“Issues that the Committee may specifically raise with Derek Moran are: the role of advisors in analysing the crisis, including crisis management options; the liquidity versus solvency debate; and an assessment of whether further changes are required.”
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 10am.
Committee proceedings can also be viewed on the move, through the Houses of the Oireachtas Smartphone App, available for Apple and Android devices.
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Ciarán Lynch (Chairman)
John Paul Phelan
Sean D Barrett