Dáil Éireann Debate, Friday - 7 September 2018
115. Deputy Pearse Doherty asked the Minister for Finance the steps that will be taken in response to the Central Bank's report on the culture in Irish banks; and if he will make a statement on the matter. [35888/18]
View answerOn foot of the serious cultural failings in banks brought to light in the Tracker Mortgage Examination, I requested that the Central Bank undertake a review of the culture within the Irish retail banks, under Section 6A of Central Bank Act 1942, as amended.
The "Behaviour and Culture Report of the Irish Retail Banks Report" was published by the Central Bank in July 2018. The Report’s detailed analysis can make a positive contribution to changing the culture of the banking sector by enhancing individual accountability and also by ensuring responsibilities are effectively delegated to senior managers in banks.
Following on from the Report’s publication, the Central Bank is requiring banks to develop and produce individual action plans under Risk Mitigation Programmes. This involves banks setting out how they will respond to the issues raised in their individual Behaviour and Culture Reviews and how they will mitigate the risks identified. Similarly banks will be required to develop and produce to the Central Bank action plans setting out how they will respond to the issues raised in the Diversity and Inclusion Assessments.
The Government’s response to the legislative recommendations in the Report will be addressed through the forthcoming Central Bank (Amendment) Bill. Department officials met with Central Bank officials and work is now underway in both the Central Bank and the Department.
In addition, my officials will begin engagement with other relevant parties to address issues already raised in relation to this Bill, including Deputy Doherty, with regard to the provisions of the Private Member’s Bill put forward by him which is currently at Dáil Committee Stage.
