Risk strategy falls foul of Central Bank

THE Central Bank has expressed serious concern at the lack of progress within the Irish banks concerning risk management.

After the property bubble it emerged that Irish banks were paying key executives and those under them pay and incentive packages that resulted in the risk factors being ignored in the lending policies pursued virtually across the entire banking system.

In its review carried out in September/October 2010, the Central Bank found just one of the banks had made reasonable progress in this key area.