Results 4,761-4,780 of 15,555 for speaker:Eoghan Murphy
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: Okay. And did this ultimately then lead to a lack of information as to the bank's individual levels of lending, credit quality, exposures, when we come into the crisis period?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: Okay. Thank you.
- 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: Okay. Just moving on then to compliance statements on page 6 of your opening statement. And you talked about the Department of Finance getting involved and giving a clear signal that this did not have Government support, your move to conduce compliance statements. Did you need Government support?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: Can you elaborate on that?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: Is that ... thank you. Is that appropriate that they do that?
- 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: Okay. And then just moving on then, further on that page, relates to the prudential pack and it's already been addressed, but that first paragraph under 2.5, you said: "The Executive assured the Authority that all these loans had strong asset backing." But was anyone checking? In the Financial Regulator's office, was anyone actually checking the quality of these assets?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: This is the five by five?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: Yes, I was just in the middle of a question. Thanks, Chair. Just in relation to that process though, because in that five by five exposure test that was done into the big developers, it was found in one of the tests that one of the banks in terms of calculations of an exposure to one individual borrower, was out by a billion. But it also noted that the - and I'm paraphrasing here - that...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: So it wasn't ... was there a knowledge gap as well, in terms of understanding the asset quality?
- 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: Okay, thank you. And then just a final question in relation to your opening statement and again, it's on page 6 and it's in relation to the IFSC, talking about sector limit and it came up earlier. You talked about, the Central Bank had effectively relaxed these limits in the 1990s, in particular to facilitate the arrival of one large foreign bank which had a major sector exposure. It was...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: So what you're saying there is we relaxed the sector limits to attract one particular bank and as a result in terms of, I suppose, looking for fairness, we then relaxed the limits for everyone else.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: Okay. Do you think that's perhaps a perverse way to approach sector lending limits? That in order, you know, to change the rules for one so they must then be weakened for everyone else.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: It's been relaxed.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: But if the standards were then relaxed for everyone else-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: -----doesn't that imply that there's something ... there's a problem there? And it implies it not in hindsight, but at the time-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: If you're relaxing the sectoral limits?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (11 Jun 2015)
Eoghan Murphy: For one bank, and then as a result have to relax them for everyone else, doesn't that imply that ... I mean, doesn't that imply that you're approaching this the wrong way in terms of regulation?