Statement - Report of the Committee of Inquiry into the Banking Crisis

27 January 2016 Press Release

The Central Bank of Ireland acknowledges the publication today of the report of the Committee of Inquiry into the Banking Crisis and notes the recommendations made by the Committee.

Since the Banking Crisis, the Central Bank of Ireland has undergone fundamental institutional reforms which include:

  • The reintegration of the regulatory, supervisory and central banking functions under a single unified structure, governed by the Central Bank Commission.
  • The implementation of a regime of supervision which focuses on an assertive risk-based approach supported by a credible threat of enforcement.
  • New governance and decision making structures combined with significant investment in people and systems.

The actions taken by the Central Bank combined with legislative reform and an overhaul of international regulation has enabled the organisation to deliver effective supervision and financial stability measures since the crisis.

Governor Philip Lane said, ‘The report describes a failure to identify risks to financial stability and recognises the lack of an overall European framework to deal with the financial and fiscal crises.

Many of the issues identified by the Inquiry relating to the Central Bank have been substantially addressed or continue to be addressed through measures including significant institutional reform, additional powers, the promotion of a culture of challenge and the implementation of the model of assertive risk-based supervision underpinned by a credible threat of enforcement.

The Central Bank has exercised its macro prudential responsibility, adopting measures to prevent risky mortgage lending, in order to protect borrowers and safeguard national financial stability.’

Deputy Governor (Financial Regulation) Cyril Roux said, ‘Banking regulation and supervision today have little in common with the previous decade. Capital requirements for banks have been increased several-fold, supplemented by several other regulatory requirements including those of the Europe-wide recovery and resolution framework.’

He added: ‘The supervisory responsibility and prudential decision-making for larger banks have been transferred to the ECB in November 2014, and the banking resolution powers to the Single Resolution Board in January 2016. Daily banking supervision is now conducted according to a detailed ECB supervisory manual, including frequent and intrusive onsite inspections.’


Approximately 145 staff in total worked on this project collating the material required to satisfy the Direction issued to the Bank by the Committee. In all approximately 7,550 documents were transferred to the Committee.