In order to make the financial regulatory bodies more accountable to the Parliament of Ireland, and improve the evaluation of their performance, the government of Ireland has embarked on major overhaul of financial regulations, reported Reuters.
It has formed Central Bank of Ireland Commission by merging Central Bank and Financial Regulator. John Hurley, Governor of the Central Bank, will chair the Commission to facilitate the transition.
Ireland is taking these measures subsequent to a series of banking scandals that dented the nation’s reputation. The current system has been at the receiving end for not acting swiftly on warnings about the volatile property market, and excessive lending by the financial institutions, Irish times quoted.
Brian Lenihan, Finance Minister, said: “The Government is taking the necessary measures to allow the domestic banking sector to service effectively the needs of the real economy and to restore the reputation of the country.”
“Our approach mirrors arrangements proposed at EU level and will ensure a cohesive approach between critical elements of effective financial regulation,” added Mr. Lenihan.
