Results 22,261-22,280 of 35,889 for speaker:Pearse Doherty
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Credit Union Sector: Discussion (Resumed) (16 Dec 2015)
Pearse Doherty: Go raibh maith agat. Will the witness explain the risk-based rationale that the credit union sector has the support of the imposition of the savings cap at €100,000?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Credit Union Sector: Discussion (Resumed) (16 Dec 2015)
Pearse Doherty: What is that risk-based rationale? I am well aware from previous statements and the knowledge we have of what is the average deposit in savings in credit unions but what is the risk-based rationale that the witness carried out within the bank that led to the belief that a cap of €100,000 was appropriate?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Credit Union Sector: Discussion (Resumed) (16 Dec 2015)
Pearse Doherty: The same risk would apply to any financial institution out there, whether the AIB or Bank of Ireland, if there were depositors, savers, in those banks who were to lose funds as a result of resolution or liquidation. We have seen a number of situations in the past but there is no imposition by the Central Bank to say that nobody can save above €100,000 in those institutions. What is...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Credit Union Sector: Discussion (Resumed) (16 Dec 2015)
Pearse Doherty: Who came up with the idea?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Credit Union Sector: Discussion (Resumed) (16 Dec 2015)
Pearse Doherty: When the witness says "we" I am looking for a specific-----
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Credit Union Sector: Discussion (Resumed) (16 Dec 2015)
Pearse Doherty: Yes. The Registrar of Credit Unions is not autonomous. It reports to banking supervision and falls under the remit of banking supervision. Was it the witness who came up with this idea, was it a higher level which deals with banking supervision in terms of not just credit unions but all the other banks or was it at a higher level, in terms of Mr. Cyril Roux, or the Governor of the Central...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Credit Union Sector: Discussion (Resumed) (16 Dec 2015)
Pearse Doherty: Just generally, from where did the proposal of the €100,000 cap emerge?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Credit Union Sector: Discussion (Resumed) (16 Dec 2015)
Pearse Doherty: It is not. Sorry, just to correct the witness.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Credit Union Sector: Discussion (Resumed) (16 Dec 2015)
Pearse Doherty: The statutory mandate of the Registrar of Credit Unions is not to protect members' funds, its statutory mandate is to ensure that the credit unions protect members' funds. There is a very clear distinction because one is going over the head of the credit unions and the other is working with them to make sure that the appropriate regulation is in place to ensure there is no risk to members'...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Credit Union Sector: Discussion (Resumed) (16 Dec 2015)
Pearse Doherty: So the proposal originated from the registry-----
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Credit Union Sector: Discussion (Resumed) (16 Dec 2015)
Pearse Doherty: The proposal originated from the registry. Is that correct?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Credit Union Sector: Discussion (Resumed) (16 Dec 2015)
Pearse Doherty: And the proposal was obviously a tiered approach which the Registrar of Credit Unions has decided to scrap and go with the blanket approach across the credit union sector. Can I put it to Ms McKiernan that, basically what she is telling the committee is that some credit unions may go into resolution in the next number years and there may be losses to members' funds if they have deposits...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Credit Union Sector: Discussion (Resumed) (16 Dec 2015)
Pearse Doherty: I have two questions and I will try to be brief. The registry previously stated that the credit unions would need up to €500 million, which, obviously, frightened members at the time. It turns out that only €20 million was required and has been drawn down. Does the registrar regret using that figure and how was it got so wrong? Does the registrar also believe that the money...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Credit Union Sector: Discussion (Resumed) (16 Dec 2015)
Pearse Doherty: Can I ask my final question?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Credit Union Sector: Discussion (Resumed) (16 Dec 2015)
Pearse Doherty: I got to ask two questions. I had to press the first question a number of times. I only asked who came up with the idea and it took approximately seven minutes to answer the question.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Credit Union Sector: Discussion (Resumed) (16 Dec 2015)
Pearse Doherty: On the Central Bank's 10% of capital-to-total-asset requirement, can the registrar explain where the 10% comes from? What is the rationale for 10%? Why was it not set at a lower, or indeed higher, level? Where is the analysis in this regard? I understand that it has been said previously that the World Council of Credit Unions has been used as a reference point, in case Ms McKiernan wants...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Credit Union Sector: Discussion (Resumed) (16 Dec 2015)
Pearse Doherty: Is it risk weighted at all?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Credit Union Sector: Discussion (Resumed) (16 Dec 2015)
Pearse Doherty: That is what should happen in terms of regulation in financial institutions. It should be based on risk, not on the number of one's assets. If one looks at other products, mortgage lending has a risk weight of 50%.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Credit Union Sector: Discussion (Resumed) (16 Dec 2015)
Pearse Doherty: I am all for very strong regulation of the financial industry but I have serious concerns over the fact that the regulation is not based on risk. We talked about the requirement for 10% capital in proportion to total assets. Do the witnesses accept that this is more than double what international peers have to carry? That is because it is not risk-weighted.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Credit Union Sector: Discussion (Resumed) (16 Dec 2015)
Pearse Doherty: The Registrar of Credit Unions is asking credit unions to carry a capital risk weight of 100% for investment in Government bonds when, by international standards, it should be down at 20%. My next question is on lending to small businesses. Ms McKiernan said that lending to small businesses has to be 50% of the total capital requirement. Given that the capital requirement has no...