Dáil Éireann Debate, Tuesday - 4 December 2018
135. Deputy Michael McGrath asked the Minister for Finance the number of European Central Bank on-site inspections of financial institutions here in 2015, 2016 and 2017; the number carried out by ECB staff; the number carried out by the Central Bank of Ireland on behalf of the ECB; and if he will make a statement on the matter. [50087/18]
View answerThe European Central Bank (ECB) is responsible for all core supervisory responsibilities as defined in the Council Regulation (EU) No. 1024/2013 (SSMR). For Significant Institutions, a Joint Supervisory Team (JST), led by the ECB and consisting of both ECB and Central Bank supervisors directly supervise these firms. On-site inspections are one of the tools used in supervision. Such inspections are carried out in line with the Single Supervisory Mechanism (SSM) supervisory processes, procedures, methodologies and manuals. They are subject to quality assurance by both Central Bank senior management and ECB management. Thus, a consistent approach across the SSM countries is achieved.
The Central Bank remains responsible for the supervision of activities of institutions defined as Less Significant under the SSM.
In response to the establishment of the SSM, which assumed supervisory responsibility for Eurozone banks in November 2014, the Central Bank created a three divisional banking supervisory function with responsibility for: Supervision; Inspections; and Analytics.
The Inspections Division is responsible for conducting in-depth investigations of risks, risk controls and governance frameworks within Credit Institutions. These inspections cover risks such as Credit, Liquidity, Capital, Operational, IT, Business Model, and Internal Governance risks. The inspections are performed by dedicated inspection teams at the premises of the Credit Institution.
On-site inspections missions under the SSM model commenced in January 2015. The reduction in the number of missions undertaken in Significant Institutions (those banks directly supervised by the ECB) since 2015 is connected with the continued evolution of the approach, and the application of a consistent, targeted engagement level across the SSM. It should be noted that missions vary in terms of the length and depth.
Inspections of Significant Institutions
|
Year |
Central Bank of Ireland (CBI) Staff Only |
CBI & ECB Staff (incl. staff from other National Competent Authorities) |
Total |
|
2015 |
20 |
4 |
24 |
|
2016 |
10 |
2 |
12 |
|
2017 |
6 |
2 |
8 |
In addition to these onsite inspections, bilateral engagement between the Central Bank of Ireland and peer supervisors is utilised in order to ensure that subject topic expertise is used in the supervision of Irish banks. One such instance was an onsite engagement in 2017 with a Significant Institution, jointly undertaken by the Central Bank of Ireland and De Nederlandsche Bank.
On-site inspections are also carried out in Less Significant Institutions.
The figures in the table relate only to prudential matters, and do not include on-site engagement carried out as part of the Central Bank of Ireland’s consumer protection and anti-money laundering mandates.
