Central Bank to gain more regulatory power in bill

FINANCE Minister Michael Noonan has published a bill aimed at granting more regulatory power to the Central Bank, including the ability to wind down failing lenders, and lessening taxpayer exposure to future bank failures.

Once passed into law, the new Central Bank and Credit Institutions (Resolution) Bill, established as part of last year’s EU/IMF agreement, will provide the Central Bank with additional powers to achieve “an effective and efficient resolution regime for credit institutions — including building societies and credit unions — that are failing or likely to fail, and that is effective in protecting the Exchequer and the stability of the financial system and the economy.”

The minister said: “The publication of the bill is an important step in ensuring that the Central Bank has the appropriate powers to promptly and effectively resolve distressed institutions when they pose a risk to financial stability.”