Saturday 17 August 2019

Governor rejects claims by former INBS director

Professor Patrick Honohan
Professor Patrick Honohan
Shane Phelan

Shane Phelan

The outgoing Governor of the Central Bank, Patrick Honohan, has rejected suggestions that the bank failed to investigate issues at financial institutions other than Irish Nationwide Building Society.

That claim was made to the Oireachtas Banking Inquiry by former Irish Nationwide director Stan Purcell.

Mr Purcell has opposed efforts by the Central Bank to hold an inquiry into alleged regulatory breaches at the defunct building society.

However, in a letter to inquiry chairman Ciarán Lynch, Mr Honohan said Mr Purcell's claim was "incorrect".

He said investigations into Anglo Irish Bank had resulted in notifications being made to the gardaí and the Director of Corporate Enforcement in relation to suspected criminal offences.

The Central Bank also carried out a number of "administrative sanctions procedure" investigations at Irish Life & Permanent in 2009, two cases at AIB in 2010 and 2013, and Bank of Ireland Mortgage Bank in 2012. A settlement was entered into with Irish Life & Permanent over a failure of internal controls.

Settlements with AIB concerned overcharging, the updating of insider lists under market abuse regulations and breaches of liquidity reporting requirements. The settlement with Bank of Ireland Mortgage Bank arose out of a failure to have adequate internal controls.

Irish Independent

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