Ciarán Lynch (Cork South Central, Labour) | Oireachtas source

So, if we take it down then to the second paragraph. I'll go through the four specific actions that the Governor - Governor Honohan - came back ... because I remember quite specifically at the time he asked for further time to give consideration to this because he wanted to answer this as accurately as possible and, therefore, was afforded the opportunity to write back to the committee so he could give it the fullest consideration, and this is his fullest consideration. He goes on to say that:

Two legislative provisions are relevant. Section 23 of the Central Bank Act 1971 [and this] provides that the Bank has a general power to require banks or a particular bank to maintain specific ratios; this power could conceivably have been used to impose a wide range of limits, including minimum capital and liquidity requirement[s] etc.

He then goes on in the next paragraph to say, "Another provision, specifically Section 33D of the 1942 Central Bank Act, gave the Governor (having regard to his ESCB tasks) or the Board of the Bank (in relation to its objectives and most appropriately the objective of [continuing ... or] contributing to financial stability [he just quotes the Act again] ... power to issue guidelines to the IFSRA as to policies and principles it was required to implement in performing functions, or exercising powers, of the Bank." He then goes on to say that in the ... on the second page of it, "in relation to the power of the Authority to issue requirements on any bank under Section 23A of the 1971 Act as to the composition of its assets and its liabilities, including liquidity buffers, sectoral limits etc." And then, in the next paragraph: "In addition, it may be relevant to add that the Governor was empowered, under Section 17A of the Central Bank Act 1971, to authorise a suitably qualified person to investigate the business of the holder of a licence or ... related [policy]" In fact the letter is up on the committee's website because it was taken or deemed to be additional evidence. Were you aware of those powers?