Éamon Ó Cuív (Galway West, Fianna Fail)
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13. To ask the Minister for Finance his view on light touch regulation in the financial services industry; and if he will make a statement on the matter. [15986/14]

Michael Noonan (Limerick City, Fine Gael)
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The experience of the financial crisis has discredited 'light touch' regulation. The response of the Government to the regulatory failures identified in the reports by Governor Patrick Honohan, Messrs. Regling and Watson and the Nyberg Commission has been to put in place a system of robust regulation, with assertive risk-based supervision underpinned by a credible threat of enforcement.

The Central Bank Reform Act 2010 created a single fully-integrated Central Bank of Ireland, with a more complete remit over prudential regulation and financial stability issues.

The 2010 Act also increased the transparency and accountability of the Central Bank.  For example, the Central Bank will soon publish its annual performance statement, which will laid before the Houses of the Oireachtas. The Act includes a requirement for the Governor and the Deputy Governors to appear before an Oireachtas Committees -- if requested -- to provide information regarding the annual regulatory performance statement.  The Central Bank is also scheduled to undergo an International Peer Review of its regulatory performance later this year.

The Central Bank and Credit Institutions (Resolution) Act 2011 provides the necessary mechanisms to enable the Central Bank to intervene where a credit institution gets into serious difficulty and is in danger of becoming destabilised or otherwise failing.

The Central Bank (Supervision and Enforcement) Act 2013 further strengthens the ability of the Central Bank to impose and supervise compliance with regulatory requirements and to undertake timely regulatory interventions.

These legislative reforms have been supplemented by a significant increase in regulatory activity by the Central Bank, with a corresponding increase in staff numbers and skill levels. 

I am satisfied that these reforms, in addition to the many reforms being introduced at European level, have brought our regulatory system into line with international best practice.