Brian Cowen (Laois-Offaly, Fianna Fail)

It is a priority for the Government to ensure that the membership of the new structure is highly authoritative, expert and experienced in all of the key areas required for it to effectively discharge its responsibilities. As Members are aware, the Government has already announced the appointment of Professor Patrick Honohan as governor. A director of financial supervision will be appointed in the coming weeks. This person will be a high calibre individual with a high level of expertise and market knowledge and extensive experience. The Government considers this is essential for the rebuilding of confidence in the reputation of the Irish financial regulatory system.

These reform measures will include strengthening corporate governance in the banking sector through, for example, a prohibition on chief executives moving directly into the role of chairman, and limiting cross directorships. Every analysis of the financial crisis has pointed to the vital importance of trust and confidence in financial services and the profound impact of the decline of these essential ingredients. The reform of the institutional structures for financial regulation announced by the Government will underpin confidence in our financial system as well as helping to enhance the flow of credit in the economy.

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