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Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Michael D'Arcy: Who withdrew the licence?

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Michael D'Arcy: Did any bank have its licence withdrawn under the initial Basel directive of 2000?

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Michael D'Arcy: Of how many banks which had their licences withdrawn is Mr. Nava aware?

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Michael D'Arcy: What reasons would there be for the withdrawal of the banking licence apart from not meeting the Basel requirements?

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Michael D'Arcy: Into CRR.

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Michael D'Arcy: Does Mr. Nava's role involve analysis of the ratings agencies?

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Michael D'Arcy: Do they come under the entire section Mr. Nava operates?

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Michael D'Arcy: Do the big four auditing firms come under Mr. Nava's section?

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Michael D'Arcy: Banks complained that they had to allocate too many staff to adhere to Basel rules, particularly Basel II. Were they reasonable?

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Michael D'Arcy: The Bank for International Settlements conducted a survey recently. It gave a number of banks a model and asked them to comply with it. Much of the information they supplied was different because each bank has a separate risk modulation. How can that modelling anchored on that basis that a model was provided but many different answers came back?

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Michael D'Arcy: Mr. Andy Haldane, the Bank of England chief economist, has a dog and frisbee theory. Is he off the mark?

Seanad: Irish Collective Asset-management Vehicles Bill 2014: Second Stage (3 Feb 2015)

Michael D'Arcy: At 10.30 a.m. tomorrow.

Seanad: Irish Collective Asset-management Vehicles Bill 2014: Second Stage (3 Feb 2015)

Michael D'Arcy: I can.

Seanad: Irish Collective Asset-management Vehicles Bill 2014: Second Stage (3 Feb 2015)

Michael D'Arcy: I welcome the Minister of State. I am not sure that there are many experts on the subject matter of this legislation in this or the Lower House. I am certainly not one. It is a complicated area and significant legislation is required in a fast-moving world. It is important that I put the €2.85 trillion in context. We used to talk in millions before moving to billions. Now we are...

Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)

Michael D'Arcy: Professor Kane is very welcome. The “too big to fail” theory is often used but that comes from the perspective of the bank. I want to reverse that perspective and ask the professor's opinion of a country that is too small to guarantee. Were we too small to guarantee?

Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)

Michael D'Arcy: Is there a metric on that? The Irish national debt was approximately €45 billion, GDP was €160 billion and the metric on the bank guarantee was €440 billion. Is there a standard metric that is used?

Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)

Michael D'Arcy: At the end of the guarantee a funding cliff was created, which created its own problems. The professor analysed a dozen or so blanket guarantees. Was our exposure to that funding cliff in line with that of other countries or did they reduce that problem in a different manner?

Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)

Michael D'Arcy: The professor uses a lot of traffic and vehicular analogies and the term “extreme drunken driving”. Is there an example of that in Irish banking terms that he is aware of?

Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)

Michael D'Arcy: He has touched on Basel I, II and III. Some hold the view that these risk analysis mechanisms are over complicated. Is there a prospect that when the banking sector becomes over-regulated it drives money into the private equity markets that are unregulated?

Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)

Michael D'Arcy: So is all of ours.

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