C&AG criticises regulator’s response to bank crisis

A REPORT into the regulator’s response to the banking crisis has judged that there were “shortcomings” in the regulation of financial institutions both here and overseas.

The 81-page report issued yesterday by the Comptroller and Auditor General (C&AG), proposes a tripartite review be undertaken by the Central Bank, Financial Regulator and the Department of Finance, into the effectiveness of all measures taken by each of the three bodies – individually and collectively – during the worst of the crisis.

“Ultimately, recognising the nature of the crisis and the unprecedented level of state support to covered institutions, there would be merit in a tripartite review… of the efficacy of the measures taken… in order to record the knowledge gained in the course of the crisis and to identify any lessons learned for future policy formulation,” C&AG John Buckley said.