Dáil Éireann - Volume 687 - 08 July, 2009

Written Answers. - Financial Services Regulation.

Deputy Joanna Tuffy asked the Minister for Finance his views on the concerns of the acting Financial Regulator with respect to banking staff, management or board members who may be over extended in terms of borrowings from their institution and who may be in a compromising position in relation to decisions on the transfer of assets to the National Asset Management Agency or the management and administration of such assets; and if he will make a statement on the matter. [27982/09]

  Deputy Brian Lenihan: The Financial Regulator has the statutory authority and responsibility to regulate and supervise credit institutions. The Financial Regulator recently carried out a review of loans to directors in financial institutions and is imposing conditions on banks and building societies following this review.

With regard to staff, the Financial Regulator has informed me that it expects the Board and management of financial institutions to ensure that proper controls and procedures are in place in relation to staff lending. In a situation where the Regulator became aware of staff in senior positions who may be, or may be seen to be, compromised because of borrowings from that institution, the Regulator would seek to ensure that the position was rectified.