Results 4,541-4,560 of 15,555 for speaker:Eoghan Murphy
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: Well, actually, the IMF, if I can find the document in front of me, the IMF ... the Central Bank was ... oversaw the stress test results, and the IMF did comment on them-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: -----and the IMF said that they welcomed these results but observed that the long period of strong economic performance limits the ability to quantify the relationship between macroeconomic variables and credit risks. And was there a response from the Financial Regulator to the ... that comment, from the IMF?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: That was in the 2006 country report from the IMF and they did flag a concern with those stress tests that were conducted. But, just to come back to that point on the two shock scenarios, can you help us as to why in an extreme scenario and a weak scenario, in stress testing the bank's books, you would have a decline of property prices at 40% for both? Why would you do that?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: Could it have been that something was suspected as to the quality of the lending in relation to property?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: Why was it then, in the letters that were written to the banks to conduct this stress test, they asked for special attention to be given to the performance of property and consumer-related lending?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: Thank you, Chair. It is on page 41 of Vol. 3. It is an e-mail. I won't say who it is from, but it is from someone in the Financial Regulator's office to one of the banks. It is talking about one of the questions that the IMF wants to look at in particular, when they come to meet the banks to look at the stress testing that they have done themselves. They want to know:... how sensitive...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: And the concerns that the IMF had-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: The concerns that the IMF had in spring 2006, did you have these concerns?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: Thank you, Chairman. Thank you, Mr. Neary. I'd like to return, if I may, to something that was raised briefly earlier. Its the five by five big developer exposure inspection that you instigated in December 2007.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: Was that instigated at your request?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: When you say "the authority", you mean the board?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: Okay.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: And following that inspection in September 2007, two high priority findings came back in relation to one institution, but there were several medium priority findings, and I'm reading here from the Honohan report page 70. The second medium-priority finding was that "The inspectors noted that some estimates provided to the inspectors as to the overall indebtedness of Group...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: So, a miscalculation or-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: It wasn't escalated to you at the time.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: Okay, and would you have been surprised after your inspectors finding that out that they then only held a 20 to 30-minute debrief with the bank?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: And the question is posed in the Honohan report, "At this rate, how much regard can the banks have had for the inspectors?"
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: Was this ever brought to your attention while you were-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: Okay. Well, should it have been?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (28 May 2015)
Eoghan Murphy: So it should have been brought to your attention?