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New banking supervision strategy a step in the right direction – Morgan

21 June, 2010


Speaking today after the publication by the Central Bank of their new strategy on banking supervision in Ireland, Sinn Féin Spokesperson on the Economy Arthur Morgan described the new strategy as a step in the right direction to correct the severe discrepancies in governance and risk management, lending standards and remuneration practices within the banks.

Deputy Morgan said:

“There was an endemic failure in the regulation of the banking sector in this State, for which the people are left to foot a bill to the tune of billions. Generational debt for these failures will cripple the economy for years to come.

“Today’s announcement of the new strategy is a step in the right direction to correct the severe discrepancies in governance and risk management, lending standards and remuneration practices within the banks that were pivotal in the collapse of the Irish banking sector.

“Had such a regulatory regime been in place sooner, instead of the hands-off, light-touch approach adopted by successive Fianna Fáil governments, we wouldn’t have been in this situation now.

“While the paper published by the Central Bank is welcome in correcting the regulatory failures of the past, it is important that it can prevail in the future. We cannot allow for a claw-back to the regulation of the past. We must ensure that the regulatory and political will is there to make sure that such a crisis never happens again.

“It is important, however, that the code of fitness and probity that was announced in the Central Bank Reform Bill is brought forward as soon as possible. Without this code, we cannot be confident in the proper and appropriate behaviour of banks and this strategy cannot be effective.” ENDS

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