Results 19,101-19,120 of 27,945 for speaker:Michael McGrath

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Michael McGrath: Page 28-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Michael McGrath: -----of BOI - Vol. 2. So again, just looking at the issue of ... of the loan-to-deposit ratios and as you can see, in the green box there-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Michael McGrath: The ratio is 159% at the end of September 2008. I understand it had gone to a high of 176%. Now, can I ask you, why do you believe the loan-to-deposit ratio went so high, and was it too high in your view and what would you regard as an optimal loan-to-deposit ratio for a bank of your size?

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Michael McGrath: Yes, 176%.

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Michael McGrath: Was there an over-dependence on the wholesale markets for liquidity and funding?

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Michael McGrath: What assumption?

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Michael McGrath: But it didn't work out that way.

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Michael McGrath: The markets dried up.

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Michael McGrath: Yes.

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Michael McGrath: So the assumption was wrong?

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Michael McGrath: Yes.

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Michael McGrath: Sure, okay.

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Michael McGrath: Of course, yes.

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Michael McGrath: But was it the collapse of the wholesale markets ultimately that brought the bank to the position where-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Michael McGrath: -----it's liquidity had dried up?

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Michael McGrath: It wasn't the flight of deposits-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Michael McGrath: Can I just ask you, Mr. Goggin, on 29 September 2008, did Bank of Ireland need a guarantee?

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Michael McGrath: Well, we have your opening statement, which is quite detailed so this is a question-and-answer exchange.

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Michael McGrath: Yes.

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Michael McGrath: Sure.