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Tuesday 18 June 2019

Central Bank to carry out 'behaviour and culture' audits of five main banks

Due to report to the Minister for Finance in June

Central Bank boss Philip Lane
Central Bank boss Philip Lane
Donal O'Donovan

Donal O'Donovan

The Central Bank is undertaking what it called "behaviour and culture" audits of each of the five main mortgage banks and will report the findings to the Minister for Finance in June.

Central Bank governor Philip Lane said action could be taken including imposing new conditions on errant lenders on the back of the probes, launched in the wake of the tracker mortgage scandal.

The reviews are into AIB, Bank if Ireland, KBC, Permanent TSB and Ulster Bank, he said.

In a barely veiled threat, the regulator noted that US bank Wells Fargo has been blocked by authorities there from growing until it addresses consumers protection failures.

In a wide ranging speech at the Institute for International and European Affairs  (IIEA) in Dublin, he also outlined the banks view that Ireland 2040 National Development Plan will be compatible with well managed budgets.

Fiscal prudence can be reconciled with ambitious fiscal plans, he said.

But, he said that would require trade-offs especially as the unemployment drops.

In terms of the proposed National Development Plan he welcomed the fact it is to introduced on a phased basis and wouldn't mean surges in spending.

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