Oireachtas Joint and Select Committees

Wednesday, 22 July 2015

Committee of Inquiry into the Banking Crisis

Nexus Phase

Mr. David Begg:

Well, as John said, I mean, the actual implementation was a function of the regulator to ... if it came to a question of changing the capital adequacy ratios and they did that. I mean, it might be argued that that was ... turned out to be too little and too late to seriously affect the course of events. But there was a corresponding difficulty, you see, with the ... with the Basel II directive, the capital acquisitions directive or whatever it was called, which actually allowed for the reduction in the capital ratios for certain types of lending. So, in a sense, despite it being inadequate, the Irish regulator moved in a way which was, if you like, counter to what the international trend was in making that particular adjustment.

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