Business Irish

Thursday 26 April 2018

Bank crisis report to be published

A third report on the causes of the banking crisis is expected to be published today.

The Nyberg report - by former International Monetary Fund economist Peter Nyberg - is due to be signed off by Cabinet this morning and is likely to criticise heavily the Central Bank and Financial Regulator.

It is expected to conclude that the authorities should have done more to dampen bank lending during the property boom.

Other key criticisms include 100pc mortgages introduced to an overheating Irish property market, initially by UK lenders, and the need for regulators to cap the amount of money banks should have lent.

The report, by Finnish banking expert Mr Nyberg, is being published after it emerged that former top man at Allied Irish Banks, Colm Doherty, was paid a total of €3m in 2010.

The ex-managing director's pay packet was signed off as a condition of a second bail-out of the troubled lender.

Finance Minister Michael Noonan said the Government was trying to clear up a legacy left by the previous administration.

"Now that the Nyberg report is going before Cabinet today we will be making decisions going forward so that matters like this don't happen again unless they are already under contract," he said.

The report, which was submitted to Mr Noonan on March 22, is not expected to name and shame any senior officials or bank executives.

The former Fianna Fail-led government is also said to be spared the worst of the criticism.

Ex-finance minister Brian Lenihan announced last July that Mr Nyberg, former director-general for financial services at the Finnish Ministry of Finance, would head up the Commission of Investigation into the banking sector.

Two reports into the banking crisis were published last year, with one concluding that the State's banking meltdown was a result of "home-made" decisions rather than the global economic crisis.

Findings by former International Monetary Fund officials Klaus Regling and Max Watson delivered a major blow to the then- Taoiseach Brian Cowen, who was finance minister ahead of the economic freefall.

In a second damning report released on the same day in June, Central Bank Governor Patrick Honohan also blamed reckless banking chiefs and the financial regulator for being afraid to "spoil the party".

Press Association

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