Background – Investigation into the Banking System
On 19 January 2010, the Government agreed a detailed framework for an inquiry into the banking crisis and for its subsequent consideration by the Dáil.
The inquiry will have two stages. First, the Government will commission two separate reports. One will be from Professor Patrick Honohan, the Governor of the Central Bank and Financial Services Authority of Ireland, on the performance of the functions of the Central Bank and the Financial Regulator over the period from the establishment of the Financial Regulator to the end of September 2008.
A second report will be from Mr Klaus Regling and Mr Max Watson who were appointed by the Minister for Finance, Mr Brian Lenihan T.D., and who will conduct a preliminary investigation into the recent crisis in our banking system to inform the future management and regulation of the sector.
These reports will also consider the international, social and macro-economic policy environment which provided the context for the recent crisis as well as identifying factors specifically pertaining to the Irish Banking system which exacerbated the impact of the international financial crisis for Ireland. Both reports are expected to be completed by the end of May this year and submitted to the Minister for Finance, before being laid before the Oireachtas shortly thereafter.
The second stage of the inquiry will be the establishment of a Statutory Commission of Investigation, pursuant to the Commissions of Investigation Act 2004, following the completion of these preliminary investigations, and which will be chaired by a recognised expert, or experts, of high standing and reputation.
The Terms of Reference for this Commission will be informed by the conclusions of the two preliminary reports.
The aim will be for the Commission to complete its work by the end of this year. Its report will then be laid before the Oireachtas for further consideration and action by an appropriate Oireachtas Committee.
Preliminary Investigation – Mr. Klaus Regling and Mr. Max Watson
The Minister for Finance, Mr. Brian Lenihan T.D., appointed Mr. Klaus Regling and Mr. Max Watson to conduct a preliminary investigation into the crisis in the Irish banking system to inform the future management and regulation of the sector.
The report will consider the international, social and macro-economic policy environment which provided the context for the recent crisis as well as identifying factors specifically pertaining to the Irish Banking system which exacerbated the impact of the international financial crisis for Ireland.
The report is expected to be completed by the end of May this year and be submitted to the Minister for Finance. It will then be laid before the Oireachtas shortly thereafter.