Tuesday 19 November 2019

Banking Inquiry: Klaus Regling being questioned by TDs

Ailish O'Hora

GERMAN economist Klaus Regling, who was the co-author of A Preliminary Report on the Sources of Ireland’s Banking Crisis, is giving evidence at the banking inquiry today.

He is also the first managing director of the European Stability Mechanism and the chief executive of the European Financial Stability Facility.

The failure of governance was at the very heart of the Irish banking crisis, the 2009 report co-written by Regling and Max Watson into the crisis found.

The report identified weak governance in Irish banks as one of the main "home-made factors" that contributed to the banking crisis.

But tax breaks going back to the 1990s, our obsession with property ownership and the fact that we never had a property crash in the past contributed too.

It also found a heavy reliance on commercial property lending which developed where "it appeared" that "internal governance and risk management procedures were overridden, sometimes systematically".

Klaus Regling, managing director of the European Stability Mechanism.
Klaus Regling, managing director of the European Stability Mechanism.

“It’s an opportunity to review the findings and recommendations of this report and also to see what has changed since it was published," said Ciaran Lynch, chairman of the inquiry. The committee will also meet with TCD Prof Philip Lane for a discussion on the Irish banking crisis and Economic and Monetary Union.”

Trinity College professor Philip Lane will also appear before the Oireachtas Banking Inquiry.

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