Ulick Burke (Galway East, Fine Gael)
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Question 10: To ask the Minister for Finance if he is satisfied with the efforts made by banks under State protection to find executives who would make a clean break with the culture of banking that has prevailed here in recent years; if he is further satisfied with the arrangements in place in respect of both pay and leadership in the banks; and his plans to introduce further changes. [44778/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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All but one of the 6 covered institutions have replaced their CEOs since 2008. All but one of the 6 covered institutions have had a change of Chairman since 2008.

Furthermore, each of the covered institutions has also had changes to the membership of their Boards of Directors and there have also been other very significant changes at senior management level in a number of these institutions.

The Government has appointed a new Central Bank Governor. The new Head of Financial Supervision at the Financial Regulator was recently appointed following a wide-ranging and comprehensive international search. Reform of the regulatory structure is well advanced.

I welcome the changes to senior personnel at the covered institutions, and there will be further changes. But changing personnel on its own will not address the problems facing the banking sector. Cultural changes such as implementing best practice and taking a more prudent approach to risk management are essential features along with appropriate and relevant supervision.

Finally, the appointment of 2 public interest directors to the 6 covered institutions represents a significant shift in the culture of banking. Further public interest appointments will be made shortly.