The financial services regulator said it took "insufficient" action in response to the banking crisis.
“It is clear that the actions we took were insufficient and were not taken early enough,” the Irish Financial Services Regulatory Authority said in its annual report, published on its website today. “We took what we considered to be proportionate actions to mitigate the risks in the system.”
The government has guaranteed all bank deposits and some debt to shore up a financial system battered by the credit crunch and the collapse of the country’s property boom. Finance Minister Brian Lenihan last month said he’ll replace the Dublin-based regulator with a banking commission headed by the governor of the Irish central bank.
The regulator has tightened its scrutiny of the industry, Chairman Jim Farrell said in the report. Some of the agency’s employees have been moved to the offices of rescued lenders to attend board meetings, he added.
“We now seek more detailed information on key risks facing covered institutions and meet the chief executives regularly to discuss the risks” to the financial system, the report said.
Jim Farrell wasn’t available to comment on the report.