Ciarán Lynch, Patrick Honohan to discuss ECB role in banking inquiry

Banking inquiry chairman Ciarán Lynch will today meet Patrick Honohan, the governor of the Central Bank, for talks about how the European Central Bank’s role in the economic crisis can be investigated.

Any successful agreement in securing evidence from the ECB to the inquiry could then pave the way for the International Monetary Fund to also cooperate.

Contribution from both is seen as an important component in helping the inquiry understand what led to the financial and banking crisis.

The talks come after the Taoiseach, Enda Kenny, recently signalled that the ECB was willing to cooperate with the banking inquiry, but legally forbidden from attending a parliamentary commission.

Mr Kenny told the inquiry by letter recently that former ECB president Jean-Claude Trichet was willing to meet MEPs in Brussels or officials through a third party or institution in Dublin to respond to certain questions.

Any formula or mode in which evidence could be taken from the ECB remains to be worked out or agreed by banking inquiry members.

A crucial point will also be if and how evidence, testimony or documents can then be introduced into the inquiry’s proceedings or discussed at hearings in Leinster House.

There have been previous claims that the Frankfurt-based bank bounced or forced Ireland into having to accept a financial aid programme from the troika. Correspondence previously revealed that Mr Trichet, as ECB president on November 19, 2010, put pressure on Ireland.

Mr Trichet said the ECB would give more emergency lending to the Irish banks only if “the Irish government shall send a request for financial support to the eurogroup [eurozone finance ministers]”.

Just two days later, the Fianna Fáil-led Government formally applied for a €64bn bailout package funded by the IMF, the European Commission and the ECB.

Mr Lynch will meet Mr Honohan today to discuss how he might ask the ECB to cooperate.

Committee members were informed last week that the IMF have indicated they do not foresee themselves attending public hearings in Leinster House.