The Relationship Framework, which was established on 29 March 2012 enabled representatives of the Minister to attend Board meetings in an observer capacity. The representative attended in a passive capacity only and did not play an active role in the meetings. The Board meetings were held monthly and a representative of the Department was usually present. To the best of our knowledge, the content and existence of the tapes was not discussed at the Board meetings following March 2012. I have been advised by the Central Bank that subsequent to the 2008 Guarantee, the Central Bank implemented a more intensive supervisory approach to covered institutions subject to the Credit Institutions (Financial Support) Scheme 2008. This more intensive approach includes attendance at committee and board meetings periodically. The purpose is to observe internal governance in operation, in order to understand the decision making process and also to be aware of individual risks across the covered institutions. The Central Bank does not participate in such meetings and Central Bank officials are not part of the decision making process at those meetings, nor do they otherwise participate in the management of the covered institution. The Central Bank may subsequently follow up items discussed for clarity to raise concerns e.g. how a particular committee operates.
I have been informed by the Central Bank that as Central Bank officials attend board meetings as part of their supervisory responsibilities they are not able (under Section 33AK) to divulge relevant information. Nevertheless they have informed me that they would take action if relevant matters came to their attention through attendance at these meetings.
