Gerry Horkan (Fianna Fail) | Oireachtas source

I read the opening statement in advance, which refers to weaknesses in new lending practices in banks and the need for banks to make a significant investment in information technology. While the term "prehistoric" is not used, Professor Lane's opening statement suggest the banks are way behind where they should be in terms of information technology. Have the banks learned? They are now lending new money and Professor Lane's statement refers to a need for better oversight regarding risk appetite strategies, the banks' focus on increasing volumes without consideration of risk and their use of league tables to incentivise staff to drive lending volumes without consideration of quality. These are the principal factors that brought us to where we are now. How can the banks, many of which were bailed out by the State in recent years, revert to practices that caused many of the problems in the first place? I acknowledge that the Central Bank has discovered these problems but how can the banks do this all over again?