Results 4,521-4,540 of 15,555 for speaker:Eoghan Murphy
- Committee of Inquiry into the Banking Crisis: Nexus Phase (27 May 2015)
Eoghan Murphy: Okay, thank you very much.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: Thank you, Chairman, and-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: -----thank you, Mr. Neary. There's just two areas I want to touch on, if I may, before we conclude this session. On page 11 of your opening statement you said that apart from considerable day-to-day contact with their respective banks, staff in banking supervision carried out over 50 inspections of banks between 2003 and 2008. Are you presenting this as a positive?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: Okay. In a report from the Comptroller and Auditor General in 2007, a special report on the Financial Regulator, he criticised the level of on-site inspections. So what did you do as a result of that criticism?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: I can give you the context, if I may. A central concern of the special report was that the inspection levels were low and that risk rating was used to ration resources rather than determine an appropriate regulatory stance for institutions.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: That's in the C&AG special report of 2009 and it's referencing the 2007 special report.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: It's not in the core documents but the regulator is ... is aware of the report.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: Well, he did say that the on-site inspections ... the level was low, and you just mentioned the ... the determination of how they'd carry out the inspections, the risk rating, and the C&AG criticised that as well in 1999 and in 2007, and what did you do about those criticisms?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: He said that successive reports ... sorry, I don't have the C&AG's report in front of me, this is actually in the Honohan report on page 64.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: Successive reports of the C&AG have urged improvement in the methodology, and that being the system evaluating risk, using such factors as supervisory complexity, corporate governance, business and reputational risk, and so on, based on regular statistical reports provided by credit institutions on their activities and financial conditions. I suppose, Mr. Neary, my point is ... or my...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: You're saying those concerns were addressed?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: In 2005, you had a three-person team responsible for both Bank of Ireland and Anglo Irish Bank, in terms of those inspections. Was that an adequate number of people?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: Okay, so, could you have known what was happening in the banks, in those two institutions, with those three people?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: The answer is that, yes, that three-person team was sufficient for giving you a level of information on the banks?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: Okay, and I have to move on because my time is short. If I could look at just stress testing, if I may, Mr. Neary. The stress testing that was conducted in 2006, and there's a reference in core documents, Vol. 3, page 35.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: Of Vol. 3.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: The 2006 stress tests, were you involved in designing those stress tests?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: Okay. The Financial Regulator wasn't involved in deciding the methodologies of the variables-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: Would you have been aware of the scenarios being put in the stress tests to the banks?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: Well just ... if you could help me clarify, because there was two scenarios put to the banks to test for. Shock scenario one was the extreme scenario and had a number of variables, and one was a decline in house prices by 40%, in the extreme scenario. Shock scenario two was the weak scenario and it had the same variables at different levels but the decline in house prices in the weak...