FINANCIAL REGULATOR:SENIOR BANKERS who were in responsible positions during the banking bubble and who are now on bank boards could be suspended next year if they are still in position, the head of Financial Regulation said yesterday.
Matthew Elderfield was asked whether he expected people in AIB, Bank of Ireland, the EBS and Irish Life Permanent to resign arising from the announcement that a further €24 billion was required to restore market confidence in those institutions.
Speaking at a press conference in the Central Bank where the outcome of the bank stress tests was announced, Mr Elderfield said he would be writing to the boards of the covered institutions in the next couple of weeks. There are six covered institutions, being the four covered by yesterday’s announcement, along with Anglo Irish Bank and Irish Nationwide.
Mr Elderfield said he would be advising the boards that it was intended to conduct a fitness and probity assessment of all board members at the start of next year.
The process would be a fair one and would include looking at the track records of the individuals in the period leading up to the banking crisis, he said. “We will be prepared to make a judgment on those individuals, and if necessary launch formal investigations and use powers to suspend or prohibit people.” Assessments would be carried out on a case by case basis, he added.
“Therefore it is an opportunity for bank board members to decide whether they wish to go through that process and whether they wish to be in post at the beginning of next year.”