Banking inquiry ‘to restore confidence’

Central Bank chief Patrick Honohan has said a broad and effective banking inquiry will go a long way to restoring confidence in the financial regulatory system and in Irish public affairs in general.

Speaking at the launch of the Central Bank’s 2013 annual report, Mr Honohan said an effective study was required and should be broad in its scope of topics and dates, rather than being narrowed to “a small period of time” surrounding the introduction of the bank guarantee scheme.

He said it could, however, run the risk of failure if it runs for a long time and focuses on minutiae that interests nobody. He also noted that an inquiry was unlikely to reveal anything new about the causes of the financial crisis.