Dáil Éireann Debate, Tuesday - 1 May 2018
84. Deputy Michael McGrath asked the Minister for Finance the role the Central Bank has in ensuring that information technology systems in place in banks are adequately designed, serviced and resourced to manage the increased usage of online banking; if the Central Bank undertakes regular inspections; and if he will make a statement on the matter. [18696/18]
Amharc ar fhreagraAs the Deputy is aware the 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 (which includes all the large retail banks in Ireland), a Joint Supervisory Team (JST), led by the ECB, and consisting of both ECB and Central Bank supervisors directly supervise these firms. In addition, on-site inspections are a tool used by the Single Supervisory Mechanism (SSM) in the supervision of banks and such on-site inspections are used in the area of IT risk. On-site inspections are carried out in line with the SSM supervisory processes, procedures, methodologies and manuals.
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. The inspections are performed by dedicated inspection teams at the premises of the Credit Institution. It is the responsibility of individual institutions to ensure that they have the necessary resources, including information systems, to deliver on their strategy. In addition, these resources must be subject to the necessary risk controls and governance commensurate with their complexity and risk.
