Oireachtas Joint and Select Committees

Thursday, 21 May 2015

Committee of Inquiry into the Banking Crisis

Nexus Phase

Mr. John Hurley:

It was a very significant adjustment at the time, and undoubtedly, you know, the way the Central Bank would look at that, is "what's the prime, what's the most significant effect this is going to have?" And we would be looking at liquidity, looking at the implications for that for people ... rolling over liquidity in particular financial institutions, and so the consequences for central banking at the time would have been primarily through that avenue and that focus, and it would have been the consequences, the implications of a drop in share price for other things, and we were very much looking at it from that point of view and looking at the liquidity-raising power of particular institutions, and the ECB backdrop or collateral backdrop at the time. That's the way, primarily, it would have been looked at.

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