Saturday 20 January 2018

Central Bank boss Honohan takes pay cut but still earns over €200,000 per annum

Central Bank governor Patrick Honohan
Central Bank governor Patrick Honohan reporters

Central Bank governor Patrick Honohan has taken a pay cut – but he will still earn €213,000 this year.

This includes a voluntary pay cut of €63,324 for Mr Honohan, who was appointed in September 2009, according to the latest Central Bank annual report.

Deputy Governor Matthew Elderfield, who did not take a pay cut, has a salary of €340,000.

The bank made a profit of €1.2bn in 2011 and most of this is paid to the Government, €958m, as a dividend.

The lion’s share of its profit came from lending to commercial banks.

The bank said it nearly doubled the number of enforcement actions against financial institutions to 1,419 from 797 last year while the number of onsite inspections more than doubled to 325 from 137.

The value of the institution’s assets fell to €173bn from €204.5bn a year earlier.

The bank also made a provision of €300mn for risks stemming from monetary policy operations.

"The provision reflects an estimated allowance for risks arising in respect of the securities held for monetary policy purposes," the bank said.

"The estimation of the impairment charge is subject to considerable uncertainty, which has increased in the current economic environment. It is sensitive to factors such as the market perception of debt sustainability."

Mr Honahan said the bank’s main plan was the continuing resolution of Ireland’s financial crisis.

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