Results 4,701-4,720 of 15,555 for speaker:Eoghan Murphy
- Committee of Inquiry into the Banking Crisis: Nexus Phase (10 Jun 2015)
Eoghan Murphy: And then when we come to the 2004 pre-budget letter, it's noted by the board, after the budget, that the advice from the Central Bank was not fully adhered to. In that scenario, what does the Central Bank do? Does it write a post-budget letter? Does it note this in its financial stability report?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (10 Jun 2015)
Eoghan Murphy: And my final question, the failure to pursue post-budget announcement what hadn't been adopted by the Central Bank pre-budget. Did that have anything to do with the membership of the board of the Central Bank, or vested interests, as you describe them, operating within the bank?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: Thank you, Chairman, and thank you, Mr. O'Reilly, you're very welcome. I'd like to look at Vol. 3, page 40, in the evidence books. It's 33AK, but in the summary document. Senator D'Arcy touched upon this earlier on. It's a meeting of the financial stability co-ordination committee in April 2004.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: You have that?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: Great. So what we see in front of us from the summary of that meeting is the Financial Regulator stating his concerns in relation to banks being blind to risks building in the banking sector, and euphoria existing in property lending markets, which we heard earlier. And it says, in bullet three: "He proposed roadshows so that CBFSAI's concerns could be communicated to senior management and...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: This was following the financial stability report?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: It was at that forum?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: Okay. I'll come back to that in a second, if I may. If we look at bullet four it says, on that same page: The Committee also agreed to follow up: - the stress testing exercise, - detailed analysis of the housing demand, and - a study of previous crises versus current conditions in Ireland." Did any of that happen? And did it ring any alarm bells?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: But given the serious concerns expressed-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: -----at this co-ordination committee, stability co-ordination committee meeting-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: -----and the committee agreed to follow up those three items-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: When did that stress testing, the follow-up stress testing occur? Was that the stress testing in 2006?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: Okay. But what about then the detailed analysis of the housing demand and a study of previous crises versus current conditions in Ireland?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: Okay, I mean, the reason I ask is because in the Regling and Watson report, on page 29, they spoke about the problem laying in plain vanilla property lending, and the quote that they have is: "...lending trends in the Irish banking sector – especially from 2003 onwards – feature a pace of expansion, and a rise in asset and funding risks, that should have rung alarm bells."
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: This is the stability co-ordination committee-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: -----concerned about systemic and stability risks, talking about doing the kind of research that perhaps could have rung those alarm bells, and you're not sure if it happened or not?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: Okay, well then let's come forward to the end of 2004.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: And the financial stability report, and in the round table that you had. At that point in time were you able to have an input into the financial stability report, in co-operation with the Central Bank?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: Okay.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: Your concerns made it into the financial stability report?