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Dáil Éireann debate -
Tuesday, 23 Apr 2002

Vol. 552 No. 3

Written Answers. - Banking System Regulation.

Derek McDowell

Question:

98 Mr. McDowell asked the Minister for Finance if he has received a report from the Central Bank on legislative changes which may be required governing banking supervision, arising from the investigation into the reported fraud of ?750 million in a subsidiary of AIB, Allfirst; and if he will make a statement on the matter. [12504/02]

I have asked the Central Bank to provide a report identifying if its investigation revealed the need for any legislative changes. I have not yet received this report. However, an initial reaction provided by the Central Bank on 13 March stated that there is no evidence to suggest that the Irish legislative framework contributed to the losses incurred.

The final report of the Central Bank is expected before the end of this month. It is understood that the Central Bank will wait until the investigation of the US Federal Reserve is complete before finalising its own report. As a precaution, the Central Bank has formally written to all credit institutions within its remit to re-emphasise the need for compliance with best international standards of management and controls. Moreover, it has asked that there be independent verification that these controls are being operated.

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