Central Bank to investigate alleged breaches at bailed out Irish Nationwide Building Society
The Central Bank is to hold an investigation into alleged regulatory breaches at bailed out Irish Nationwide Building Society.
Nationwide needed a bailout of over €5bn and was nationalised back in 2010.
The bank said there are “reasonable grounds” to suspect the building society was in breach of “certain prescribed contraventions”.
The Central Bank can levy fines of up to €5m on an institution and €500,.000 on individuals found to have been involved in breaches, under its administrative sanctions procedure.
On its website, the Central Bank said that the investigation team will decide whether “certain persons who were concerned in the management of INBS at the relevant time participated in the commission of those suspected prescribed contraventions”.
A three-person panel of inquiry has been created to analyse the potential breaches.
"An Inquiry will be held by the Central Bank to establish whether these suspected prescribed contraventions have been committed by INBS and whether certain persons who were concerned in the management of INBS participated in the commission of those suspected prescribed contraventions by INBS," the Central Bank added.
An Inquiry will now be held by the Central Bank to establish whether the suspected breached occurred and., if so, whether individual managers at the former building society were involved.
No individuals have been named.
A panel made up of barristers Marian Shanley and Ciara McGoldrick -who is also an accountant, as well as Geoffrey McEnenry, a banker at Lloyds in Hong Kong. Marian Shanley will chair the panel.