Results 24,921-24,940 of 35,894 for speaker:Pearse Doherty

Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)

Pearse Doherty: So so your testimony is ... your testimony today is the financial stability ... financial stability was sound up until the period of 2008-2009. And if that is your view today, can I ask you how you can ... how you can express that view given what we know today ... in terms of credit concentration limits, in terms of over-exposure to property, in terms of a commercial and housing property...

Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)

Pearse Doherty: Mr. Hurley, with respect, I am asking you not what ... what you said in your reports at that time. I'm asking you for your view today, which ... you've expressed your view that the financial stability of the system was sound up until the period of 2008. And again, financial stability in ... and it's in the memorandum of understanding in Vol. 1: "A financial stability matter may include but...

Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)

Pearse Doherty: I appreciate that Mr. Hurley. Again, I am not referring to the assessments that you made in the years of the financial stability reports. I am actually asking your view today, in retrospect, and what you've said is that you believe that the financial stability was sound up until the period of 2008. Do you stand over the fact that today, in 2015, you still are of the view that financial...

Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)

Pearse Doherty: My question is quite simple. You've made the point that you believe the financial stability of the system was sound up until the period of 2008. Today is 2015. I am asking you how do you stand over those comments that the individual institutions which were part of that financial stability were sound up until that period, given all that we know in the intervening years? Do you still ......

Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)

Pearse Doherty: I'll move on because quite a bit of my time has gone on that simple question.

Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)

Pearse Doherty: What do you see as your main objectives as Governor of the Central Bank after the regulatory restructuring of 2008?

Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)

Pearse Doherty: Yes. The memorandum of understanding, and this is in Volume 1 of the evidence book, page 29-32. The memorandum of understanding between the Central Bank and the regulator dealt with the responsibilities of both the CBFSAI and the ... IFSRA. Was the excessive credit growth of the banks a development that should have been dealt with by the Financial Regulator or by the Central Bank?

Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)

Pearse Doherty: Can you outline to the committee your responsibility to analyse micro-prudential ... the micro-prudential health of the financial system?

Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)

Pearse Doherty: So, Governor, you were, under the memorandum of understanding - again, this is on page 30 - your responsibility was, where appropriate, to analyse the micro-prudential health of the ... of the system. Is that correct?

Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)

Pearse Doherty: Right. Can I just read from page 30 and it says,''To carry out the Bank's mandate for financial stability, the Governor and the Board's responsibilities therefore involve:" I will skip to "iv) analysis of the micro-prudential - where appropriate - as well as macro-prudential health of the financial sector." It doesn't seem to say to me that they'll make this facility...

Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)

Pearse Doherty: Sorry, just until I finish. Did you ever carry out that responsibility laid out to you in the memorandum of understanding at your time as Governor of the Central Bank?

Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)

Pearse Doherty: Governor, I am reading from the memorandum of understanding. It's on page 30 and dispute anything I am saying here if I am reading it wrong. It says, "To carry out the Bank's mandate for financial stability, the Governor and the Board's responsibilities therefore involve:" It mentions three things and then it goes on to the fourth, and it says, "analysis of the micro-prudential - where...

Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)

Pearse Doherty: But you had the power to analyse the micro-prudential health of individual financial institutions. Am I correct so far in that point?

Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)

Pearse Doherty: Yes.

Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)

Pearse Doherty: The memorandum of understanding also talks about the regulator's responsibility in this regard as well in terms of prudential supervision, but they are not here. You are, today. You had that power. The question I would ask, because it goes on to say, "In this context, the Governor and/or the Board's objective is to identify developments which could endanger the stability of the system as a...

Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)

Pearse Doherty: But you had the power, if you wanted to.

Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)

Pearse Doherty: With respect, Mr. Hurley, this is a memorandum of understanding with the Financial Regulator and the Governor and the board of the Central Bank. This is after the legislation took place and this is how the division of labour was supposed to operate, which allowed you this power in terms of micro-prudential analysis of the health of the financial system.

Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)

Pearse Doherty: Can I ask you how involved were your engagements with the financial institutions in terms of communicating the Central Bank's opinion regarding the financial stability issues and, if not directly involved, what directions, if any, did you give to others in the Central Bank or Financial Regulator on these engagements?

Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)

Pearse Doherty: Okay. Mr. Hurley, I would like to refer to the 2004 board discussions, which have been summarised for the committee in the booklet of core documents. It's in Vol. 1, page 106. This is in relation to a discussion on the 2004 financial stability report and the summary as given reads, "a collapse in property prices would not only affect the quality of security for bank loans, it would also...

Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)

Pearse Doherty: Yes. So, it wasn't a real risk, but you were acknowledging in 2004 that the property loan book could cause a systemic risk to the banks.