Central Bank chief expects inquiry into banking crisis

QUESTIONS remain about how Irish banks lost so much money, according to the Governor of the Central Bank who has said he believes there will be an inquiry into the causes of the recent crisis in the Irish banking system.

Professor Patrick Honohan said: “It is clear that there is going to be some kind of inquiry at some stage” but added that “a witch hunt is no good for anybody”.

The Governor, who was appointed to the position in September, said he does not fully understand how the banks got themselves into their current difficulties which lead the Government to step in with capital assistance and the takeover of bad loans through NAMA.