Results 24,961-24,980 of 35,925 for speaker:Pearse Doherty
- 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.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)
Pearse Doherty: Okay.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)
Pearse Doherty: Okay. Mr. Hurley, I'd like to refer to the summary of the 2004 minutes in the Irish Financial Services Regulatory Authority, which are in Vol. 3, page 25 - I will quote it anyway - which has been presented to the committee in core booklets.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)
Pearse Doherty: It is Vol. 3, page 25. The summary reads as follows, The Authority noted than an inspection ongoing at bank A focused on the rate of growth of the loan book and large exposures. An inspection ongoing at bank B focused on the commercial property exposure. The question I have, Mr. Hurley, is would the Financial Regulator's office have shared this type of information with the Central Bank,...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)
Pearse Doherty: Vol. 3, page 25. It's a quote from a summary of the 2004-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)
Pearse Doherty: It's basically an inspection that was carried out by the Financial Regulator in two banks, one in relation to the rate of growth of loan book and large exposures, the other one on bank B focused on commercial property exposures. Would you have been aware of those inspections?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)
Pearse Doherty: Okay. Would you have been aware or not of the review of the commercial property lending activities of the Irish domestic banks that was undertaken by the Financial Regulator's office in late 2007 and early 2008?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)
Pearse Doherty: Was the Central Bank aware or not of the links between wholesale funding and the commercial and residential property development in the Irish domestic banking system?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)
Pearse Doherty: Can I ask you, from the Northern Rock crisis in September 2007 to the collapse of Lehman Brothers one year later, did you ever engage directly with the CEOs of Irish financial institutions either through letter or by phone? I'm not asking you to name them, but did you ever directly engage with the CEOs of the financial institutions?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (21 May 2015)
Pearse Doherty: Okay. So, the question I have is, is the only engagement the meetings, or would there have been personal contacts between you and the CEOs of financial institutions during the year?