Professor Philip Lane:

I agree with the Deputy that the Central Bank should aspire to be the gold standard. When we regulate firms, a lot of it is about internal culture. I agree with the goal that the Central Bank should be held to the highest standard but how does it get to the highest standard? The process includes this kind of internal audit which makes sure that if there are areas where that standard is not being reached, the issues are identified and fixed.

That is the process that worked. The nature of audit reports is that they describe risks in the different categories of high risk, medium risk and low risk. The bank definitely has responded in the appropriate way, and generally speaking-----