Vol. 415 No. 8
192 Mr. J. Bruton asked the Minister for Finance if he intends to bring forward legislation to amend the law governing the prudential supervision of banks operating in or from Ireland arising from the recent collapse of the BCCI.
The supervision of licensed banks is a matter for the Central Bank. The bank advises me that it has been monitoring the course of events in the BCCI case but that no supervisory aspect has so far emerged which would lead the bank to recommend an amendment to the powers of the bank which were most recently strengthened and up-dated in the Central Bank Act, 1989. The reasons for the collapse of BCCI and the implications for supervisors are still being analysed and discussed at international level. It is, therefore, too early to appreciate fully the lessons which are to be learned. The bank will keep the situation under continuous review.
