Honohan: Inquiry should be broad

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, according to the governor of the Central Bank, Patrick Honohan.

Honohan: Inquiry should be broad

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

Reacting to criticisms aimed at the regulator system by Judge Martin Nolan in the Anglo trial, he said all of the actions related to a “regulator of the past”.

“[There is ] nothing that we would want to disagree with with what the judge has said,” he said. “This is something that is behind us but, of course, the financial crisis is not behind us. It has had a long period of consequences. The regulatory actions that happened in the past are something you wouldn’t expect to see today.”

Deputy governor Cyril Roux said the comments apply to a regulator of the past and sweeping changes had been made.

Mr Honohan would not be drawn on “clawing back” and of the pension or severance payments made to Patrick Neary. He retired from the role in 2009 and received a €630,000 pay-off as well as a pension initially working out at €143,000 a year. This has been reduced by €24,000-a-year in line with public service pension cuts.

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