Michael McGrath (Cork South Central, Fianna Fail)
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221. To ask the Minister for Finance if he has full confidence in the manner in which the Central Bank of Ireland is performing its regulatory functions at the present time; if he is proposing any changes in the area; and if he will make a statement on the matter. [4226/14]

Michael Noonan (Limerick City, Fine Gael)
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A whole series of reforms have been introduced since the financial crisis to underpin a more effective and efficient financial regulatory regime.  The Central Bank Reform Act 2010 gave effect to significant structural changes in the operation of financial regulation in Ireland. The Central Bank (Supervision and Enforcement) Act 2013 further strengthened the ability of the Central Bank to impose and supervise compliance with regulatory requirements and to undertake timely prudential interventions.

At EU level, the Irish Presidency was to the fore in prioritising a number of dossiers geared towards enhancing the international regulatory environment which ensures that our regulatory framework is benchmarked against other EU and international jurisdictions.

These legislative reforms have been supplemented by a significant increase in regulatory activity by the Central Bank. The Bank's new risk-based regulatory framework (PRISM) represents a challenging and proportionate risk-based system of supervision for all financial institutions operating in Ireland. This new approach is supported by a significant growth in staff numbers leading to the establishment of new directorates and divisions. The Bank is committed to continuing to review internal governance arrangements to ensure that it has the appropriate internal structure, resources and organisational capability to achieve its strategic goals.

In 2012, the Bank published its three-year Strategic Plan for the period 2013-2015 which sets out a strategy of assertive risk-based supervision, underpinned by a credible threat of enforcement, in order to deliver on its key strategic priorities over the coming years. The Bank intends that reform of its regulatory and supervisory framework will be deepened over the term of the plan to minimise future risks to financial stability and enhance consumer protection, while continuing to promote a better functioning financial sector. I am satisfied that the reforms introduced in recent years have brought our regulatory system into line with international best practice.  A number of further changes are being introduced as part of the wider EU reform agenda --which was advanced significantly under the Irish EU Presidency -- and it will be necessary to review the need for future changes on an ongoing basis to take account of emerging best practice in regulation and to keep pace with developments in the modern financial services sector.