Michael McGrath (Cork South Central, Fianna Fail)
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77. To ask the Minister for Finance his views on the moves in the US to reduce financial regulation and the potential roll back of the Dodd-Frank law; if he has undertaken a risk assessment of such moves on the Irish banking and financial sector; and if he will make a statement on the matter. [6572/17]

Michael Noonan (Limerick City, Fine Gael)
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I am not going to directly comment on the speculation of potential changes to financial regulation in the United States or other jurisdictions, which are a matter for the relevant legislators. The Financial Stability Group (the successor to the Principals' Group), which includes the Department of Finance, the Central Bank and the NTMA, is assessing geopolitical risks including changes in other jurisdictions' financial regulation which could affect the global financial system. The Deputy will be aware that at a European and national level, financial legislation and regulation has undergone significant reform and strengthening since the financial crisis.

In an Irish context, these comprehensive reforms, as well as the structural, organisational and cultural changes made within State Institutions, including my Department, were aimed at addressing the weaknesses in our financial system. Ireland has learned the importance of firm action to prevent financial crisis.

Ireland is also a full participant in the reform of financial regulation at the European level. The stability of financial markets has been a central priority for the European Union since the financial crisis and in the interim we have seen the introduction of reformed oversight and resolution regimes to address any emerging vulnerabilities or instabilities in the European Banking Sector.

These reformed oversight and resolution regimes include new European institutions; strengthened regulations; a more intrusive supervisory approach; and a new focus on macroprudential requirements. 

The Single Supervisory Mechanism (SSM) is now responsible for the prudential supervision framework for euro area banks. The central piece of the SSM supervisory process is the Supervisory Review and Evaluation Process (SREP) under which ECB led joint supervisory teams inspect business models, internal governance, profitability and banking risks.

I can assure the Deputy that financial regulation developments in other jurisdictions, outside of the EU, are subject to continual monitoring by the EU, the Central Bank and my Department.