Micheál Martin (Cork South Central, Fianna Fail)
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Question 88: To ask the Minister for Finance the changes in the leadership of regulators and banks that the Taoiseach was referring to in his London speech on 18 April 2011. [9559/11]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy will be aware, a number of changes have taken place at senior level within the Central Bank of Ireland in recent times:

- Professor Patrick Honohan became Governor in 2009

- Matthew Elderfield became Head of Financial Regulation in 2010

- Gerry Quinn became Chief Operations Officer in 2011

A number of other senior appointments have been made at the Central Bank in the areas of market supervision, financial institution supervision and enforcement. Also, the two Pillar Banks have recently announced that eight of their remaining pre-September 2008-appointed directors will be stepping down.

The Deputy will also be aware that in my statement on the Nyberg report in this House on 20 April 2011, I set out a number of measures designed to strengthen bank boards and management. These measures provide that the Chairman of each applicable institution provides me and the NTMA with a Board Renewal Plan, each institution will also be asked to provide a Management Renewal Plan. The Board Renewal Plan will set out for each institution the steps to ensure that the skills and competence levels of board members are fully adequate to meet the demands of the current and future banking system. In this regard, a programme of rotation of board members, commencing with board members appointed before September 2008 will be expected as part of the plan. This will ensure a smooth process which will ensure the succession of incumbent board members who were in place before September 2008. I expect this succession to be completed by 2012.

In addition, the Head of Financial Regulation, Mr. Matthew Elderfield, recently announced that the Central Bank is planning to review the fitness and probity of all existing executive and non-executive directors of banks which have received State support. The Central Bank will assess any incumbent directors who plan to be in post after 1 January 2012 against the new standards, including competence and track record in the period leading up to the financial crisis.

On the 22 March 2011, the Central Bank of Ireland published a consultation paper proposing the implementation of new statutory fitness and probity powers for the financial services industry. In this regard, the Central Bank is seeking views on proposed new statutory grounds which are identified in the Central Bank Reform Act 2010 and will set the requirements for entry into and removal from a senior position within regulated firms. This Act provides additional criteria on when the Central Bank can use its powers to refuse an application to appoint an individual to a senior position or remove someone, views have been sought on what senior positions should be subject to the new regime. The Central Bank expects the new regulations and statutory standards implementing the regime will come into effect from a proposed effective date of September 2011.

Micheál Martin (Cork South Central, Fianna Fail)
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Question 89: To ask the Minister for Finance the new banking expertise that is available to him as a result of changes implemented by the Government in the past two months. [9560/11]

Michael Noonan (Limerick City, Fine Gael)
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My Department works in close liaison with all relevant agencies, particularly the Central Bank and the NTMA, on banking sector issues. Mr. John Moran, who is on secondment to the Department from the Central Bank of Ireland, has been assigned to oversee the recently announced restructuring of the banking sector and associated issues. He leads the relevant team within the Department of Finance and reports directly to the Secretary General.

Over time, a number of specialist staff have been recruited to supplement the in-house expertise of the Department in banking matters and I anticipate that more such staff will be required. I will therefore be reviewing and adding, where appropriate, to the banking expertise within the Department on an ongoing basis.

Question No. 90 answered with Question No. 86.