Banks insist system failures being addressed

BANK representatives have accepted the role of the various financial institutions in the banking crisis, but said that the resulting problems are already being addressed.

Responding to Peter Nyberg’s report — which ruled that the banking crises was mainly domestically driven — the Irish Banking Federation (IBF) said it and its member banks are “engaging constructively” with the process of improving Irish banking.

“The report points to shortcomings, mistakes and failures on the part of many of the key players in the economy — including banks, regulators and Government amongst others. The consequences of this collective failure have been well documented and the IBF has fully acknowledged the banking sector’s role in this and its full appreciation of the support of Irish taxpayers,” the IBF said.

“The shortcomings identified are being addressed through the process of bank restructuring and recapitalisation, regulatory reform, overhaul of corporate governance, statutory consumer codes and other measures.”

Bank of Ireland said it “considers it important to draw on the lessons of the past to help... build a sustainable business”.

AIB, meanwhile, pointed to its recent restructuring announcements as proof of its moves to meet new standards. It also announced three board members, Anne Maher, David Pritchard and Stephen Kingon, won’t be seeking re-election at its next AGM.

Leading accountancy firm, Grant Thornton said that yesterday’s report highlights the need for risk management and internal audit functions to be better resourced and kept independent of management.