New Bill to increase powers of Central Bank

Finance Minister Michael Noonan has today published a new Bill aimed at giving the Central Bank a range of new powers and revising existing ones.

It is designed to strengthen the Central Bank's ability to ensure financial institutions comply with regulations.

The new Central Bank Supervision and Enforcement Bill is part of our requirements under the terms of our EU/IMF bailout deal.

The Central Bank's proposed new powers cover areas including protection for whistle-blowers, sanctions for those who do not comply with regulations, tougher fines for wrong-doing, and increased co-operation with overseas regulators.

Banks found guilty of regulatory breaches will be liable for fines of up to €10m under the new legislation.

Under the terms of the Bill, the Central Bank would also be able to attend meetings of financial services providers.

The Finance Minister said that the new Bill represents a significant further step in the reform of financial regulation in Ireland.

Minister Noonan is vowing the changes in the Bill will underpin "an assertive, risk-based model of regulation, supported by a credible threat of enforcement".

It is expected to progress to second stage in the Dáil in the autumn session.