No quick fix for banking system, says Financial Regulator

The Financial Regulator has today warned that it will take some time to develop a new banking regulation system.

Matthew Elderfield made the comments at the Oireachtas Public Accounts Committee, which is reviewing the response to the financial markets crisis.

The Regulator says the Central Bank is developing an assertive risk-based system of regulation which will be backed by the credible threat of enforcement.

"This is a multi -year and multi-faceted project, not a quick fix," said Elderfield.

"We have to recruit and train staff, to put in place information technology systems, to develop risk assessment models and to develop and implement our enforcement capability. It will take some time to fully develop our new system of regulation. But we have started the process."

"Even with all these changes, we can never guarantee a zero failure rate. But I think regulated firms are already very clear that the bar has been set high and they need to adjust to the new world of financial regulation in Ireland."