Tuesday, 2 July 2013

Questions (198)

Micheál Martin

Question:

198. Deputy Micheál Martin asked the Minister for Finance his views on whether banking regulation has got tighter here; and if he will make a statement on the matter. [23707/13]

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Written answers (Question to Finance)

A well-regulated, effectively supervised, competitive and more stable financial services sector is crucial to our economic recovery. It is important too for the continued development of Ireland as a centre for international financial services and as a location of choice for international foreign financial services firms. A range of reforms have been introduced 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. It provided a statutory basis for a comprehensive domestic regulatory framework for financial services and set out new powers for the Central Bank to ensure the fitness and probity of nominees to key positions within financial service providers. The Central Bank (Supervision and Enforcement) Bill 2011, which is being considered at Report Stage in the Seanad, further strengthens the ability of the Central Bank to impose and supervise compliance with regulatory requirements and to undertake timely prudential interventions. These reforms followed on from the reports of Prof. Honohan and Messrs. Regling and Watson which identified a range of regulatory failures which were instrumental in the financial crises.

At EU level, the Irish Presidency succeeded in agreeing a number of dossiers which balance responsible governance with the need to avoid unnecessary burdens, thereby ensuring that opportunities for economic growth and job creation are maximised. That work will ensure that our regulatory framework is benchmarked against other EU and international jurisdictions and enable us to work in building growth for the future that is underpinned by a sound regulatory environment.