Oireachtas Joint and Select Committees

Tuesday, 12 March 2019

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

A Future Framework for Accountability in the Banking Sector: Discussion

Photo of Kieran O'DonnellKieran O'Donnell (Fine Gael) | Oireachtas source

I welcome Mr. Crowley. Things have changed considerably in Banking and Payments Federation Ireland. One of Mr. Crowley's predecessors, Pat Farrell, was probably one of the best known people on the airwaves for a number of years because there were such issues. I was a member of the Joint Committee of Inquiry into the Banking Crisis. When it came down to it, it was all about risk. The banks and particularly their chief executive officers, CEOs, took too much risk.

Has the federation had any new members in recent years? Are any new banks entering the Irish market? Are we getting a more competitive market? There is a sense that the market has become less competitive.

Mr. Crowley said that it is not all about return for the banks. I believe it is and I have no problem with that. Banks have shareholders. People invest in banks to get a return. It has to be about money. Does Mr. Crowley believe the current accountability regime for CEOs and top officials in banks is sufficient? Is there a need for a senior executive accountability regime as proposed? People working down the line in banks were put under pressure to sell products by top management in the boards. I distinguish between the CEOs and the board, and people working in banks who are on the front line. We have spoken to many of them who were put under terrible pressure to meet targets and make returns.

Has the federation had many new members? What is its role? Is the current accountability regime sufficient? If it is not sufficient, what issues should be addressed? Under the current set-up, can CEOs and top management on boards take risks that put the banks in jeopardy given that we still have a significant level of taxpayers' money invested in many of those institutions?

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