asked the Minister for Finance if in view of the growth of the functions of the Central Bank in recent years and the declared intention of future developments in central banking practice in this country he will state what form he regards as suitable that these developments should take; and what rôle eventually the Central Bank should have in the Irish economy.
Ceisteanna—Questions. Oral Answers. - Developments in Central Banking Practice
The Government have indicated, in their programme for economic expansion, that they view with approval the recent trend towards a more active exercise of its functions by the Central Bank. This refers to the developments in regard to the rediscounting of Bills of Exchange and Exchequer Bills, the extension of the assets of the Legal Tender Note Fund to include United States Government securities and more recently, the settlement of inter-bank clearings. Section 6 of the Central Bank Act, 1942, imposes on the Bank the general function and duty of ensuring that, in what pertains to the control of credit, the constant and predominant aim shall be the welfare of the people as a whole. The manner and extent of the exercise of its statutory powers and functions are primarily for determination by the Central Bank. I have no doubt that full consideration will be given by the bank to the views contained in the recent publications on the subject of national development and that the bank will, so far as its resources and statutory obligations permit, continue to develop its functions so as to facilitate economic expansion.