Elderfield predicts a tough regime of regulation

THE financial sector, from banking to IFSC companies, is to face a tough regime of regulation Matthew Elderfield, head of Financial Regulation Central Bank Ireland, promised yesterday.

In a speech to IBEC’s Financial Services Ireland section Mr Elderfield said: “It is clear that we need a fundamental overhaul of the regulatory model for financial services in Ireland. Our new approach will be one of assertive risk-based regulation underpinned by a credible threat of enforcement.”

Mr Elderfield said, following National Asset Management Agency’s take-up of its first tranche of loans, the proposed recapitalisation of the banks and the setting of capital requirements is clear, and the costs of re-capitalisation for the two largest Irish banks can be achieved without adding to public sector debt.