Dáil Éireann Debate, Thursday - 26 January 2017
68. Deputy Michael McGrath asked the Minister for Finance his views on the potential roll-back of financial regulation in the United States and other jurisdictions; the extent to which this will impact financial regulation and the financial sector here; and if he will make a statement on the matter. [3737/17]
Amharc ar fhreagraI am not going to comment on any speculation around the potential roll back of financial regulation in the United States or any other jurisdiction as it would be inappropriate for me to do so.
The stability of financial markets has been a central priority for the European Union since the financial crisis and in the interim we have seen the introduction of reformed oversight and resolution regimes to address any emerging vulnerabilities or instabilities in the European Banking Sector.
These reformed oversight and resolution regimes include new European institutions; strengthened regulations; a more intrusive supervisory approach; and a new focus on macroprudential requirements.
The Single Supervisory Mechanism (SSM) is now responsible for the prudential supervision framework for euro area banks. The central piece of the SSM supervisory process is the Supervisory Review and Evaluation Process (SREP) under which ECB led joint supervisory teams inspect business models, internal governance, profitability and banking risks.
All of these new regulations and institutional arrangements have been designed to address the challenges of banking oversight and resolution at a European level and provide for a pro-active approach towards systemic and emergent risks. Besides the introduction of new European and national regulations, the Central Bank too has increased its resources and has become more pro-active in addressing systemic risk. This entire new framework is designed to secure a safe, responsible, and growth enhancing financial sector in Europe, while protecting consumers and the economy.
Financial regulation developments in other jurisdictions warrant ongoing attention by the EU and by the Central Bank, and let me assure the Deputy that both my Department and the Central Bank are continually monitoring international developments in collaboration with our EU colleagues.
