Oireachtas Joint and Select Committees

Tuesday, 1 October 2019

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

Irish Banking Culture Board: Discussion

Photo of Rose Conway WalshRose Conway Walsh (Sinn Fein) | Oireachtas source

It is very useful for us to examine the Irish Banking Culture Board and know the individuals on it. We do not underestimate the challenge in trying to change culture in any organisation but particularly the banks which have been coming before the committee for several years. It reminds me of trying to shovel the snow while it is still snowing.

There are many outstanding things that need to be dealt with. I am aware that the board does not have a regulatory role as such, as does the Central Bank, but I believe that the easiest and fastest way to change the culture is for honesty and admissions around what has gone wrong and where it went wrong. As for the behaviours we are trying to change now and the behaviours that make up that culture, we must remember that in other countries, people are serving time in jail for those exact same behaviours. This is why the witnesses will forgive us for having some degree of cynicism around all of this. Mr. Justice Hedigan spoke of the board trying to achieve and promote an environment in which ethical behaviour lies at the heart of banking. This is what we all want to achieve from here.

I have a couple of questions to frame that. The committee received evidence on 28 June that contained an admission by the Institute of Chartered Accountants in England and Wales that its advice to British and Irish banks on accounting for non-performing loans did not comply with company law. We approached the Irish banks about this and they advised members that they were not concerned about it and there was nothing to see. This is astounding given that as a result of this flawed advice, Irish banks were forced to sell mortgages and home loans to vulture funds at substantial discounts. If the banks are taking this attitude, is it reasonable to assume that the culture of the banks remains as "let us see what we can get away with regardless of the consequences for the consumer"?

Comments

No comments

Log in or join to post a public comment.