The Oireachtas Banking Inquiry will resume public hearings tomorrow, Wednesday, 2nd September when it will meet with former Irish Nationwide Building Society executives Michael Fingleton and John Stanley Purcell and non-executive Michael Walsh.
The schedule for tomorrow is:
Session A: 9.30 a.m.
Michael Fingleton, former Chief Executive, Irish Nationwide Building Society;
Session B: 2.30 p.m.
Michael Walsh, former Chairman, Irish Nationwide Building Society; and
Session C: 4.30 p.m.
John Stanley Purcell, former Finance Director and Secretary, Irish Nationwide Building Society.
Chairman Ciaran Lynch TD said: “The focus of the inquiry tomorrow is on the Irish Nationwide Building Society. At our first session tomorrow we will hear from Michael Fingleton, former INBS Chief Executive. A Qualified Chartered Accountant and Barrister, Michael Fingleton joined the building society in 1971 and was Chief Executive until his retirement in 2009.
We will continue our hearings in the afternoon with Michael Walsh, former Chairman at Irish Nationwide Building Society. Mr Walsh was a director of INBS from 1995 and Non-Executive Chairman from 2001 to 2009.
Mr Fingleton and Mr Walsh will be asked to give evidence on a number of lines of inquiry, including: the composition, skills and experience of the board and board subcommittees; 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; and the impact of shareholder or lending relationships in promoting independent challenge by the board and/or executives
Other lines of inquiry include: the liquidity versus solvency debate; 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 appropriateness of the regulatory regime; the effectiveness and appropriateness of the supervision policy and powers; the nature and appropriateness of the relationship between the Central Bank including the Financial Regulator, the Department of Finance and the banking institutions and the appropriateness of the relationships between Government, the Oireachtas, the banking sector and the property sector.
Our hearings tomorrow afternoon will conclude with John Stanley Purcell, former Finance Director and Secretary at Irish Nationwide Building Society. Mr Purcell was Finance Director and Secretary of INBS from 1994 to 2010. He held the position of Financial Controller from 1986 to 1994.
Among the issues the Committee will address with Mr Purcell are: the integrity of financial reporting; the quality of the business model setting process; the appropriateness of property-related lending strategies and risk appetite; the analysis of risk concentrations in the base, the adverse economic scenarios and the impact on capital structure; the appropriateness of funding sources — the mix, maturity profile and cost; an analysis of liquidity risks under adverse scenarios; interest rate risk appetite setting and monitoring; and the capital structure and loss absorption capacity.
He will also be questioned on the adequacy of the valuation policies and assumptions to accurately assess loan security; 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; the liquidity versus solvency debate; 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 appropriateness of the regulatory regime; the effectiveness and appropriateness of the supervision policy and powers; and the nature and appropriateness of the relationship between the Central Bank including the Financial Regulator, the Department of Finance and the banking institutions.”
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 9.30am.
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:
Houses of the Oireachtas,
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All general enquiries should be directed to the Committee Secretariat.
t. +353 1 618 3651
Ciarán Lynch (Chairman)
John Paul Phelan
Sean D Barrett