Board didn't have enough experience
The Anglo Irish Bank board didn't have the "experience'' or the "specialist knowledge'' to deal with the risks building up at such a fast-growing bank, the Nyberg report has found.
It has also emerged that Anglo's lending team cited "exceptions'' to the bank's lending rules in order to give more loans to developers as the boom was coming to an end.
In the first quarter of 2006, for instance, of the 1,047 loans approved by its credit committee, some 519 were based on getting "exceptions'' to the bank's official lending policy.
It has also emerged that not all the key letters from the Financial Regulator, highlighting the dangers of over lending, may have been passed on to Anglo's board or risk committee.
Anglo was able to provide loans to developers quickly and this gave it an advantage, but as the boom came towards the end competition increased and Anglo had to take greater risks to keep its customers.
The report highlights a range of trenchant criticisms of how Anglo operated and points out that regulators had misgivings about the bank, but didn't seem interested in confronting the problems.
"These issues were particularly problematic because most Anglo board members did not appear to have sufficient experience or knowledge to recognise the specific risks,'' said the report.