THE FINANCIAL Regulator has begun vetting candidates for top banking jobs in face-to-face interviews in the first change of policy introduced by the new banking watchdog, Matthew Elderfield.
The Irish Timeshas learned that Mr Elderfield has instructed regulatory staff to begin holding the interviews, which will last about two hours, from this week as part of regulatory checks on the fitness and probity of prospective candidates to certain senior bank roles.
Among the issues to be asked of prospective senior bank executives will be the lessons learned from the financial crisis, their views on risk management within banks and their understanding of the regulator’s responsibility.
The jobs to be subject to interview are key roles such as chief executive; finance director; chief financial officer, chief risk officer and chief operating officer.
“This is the beginning of a change in approach,” said a source with knowledge of the new policy.
The regulator will initially only interview select roles focusing on the State’s largest banks, but will eventually widen the process to interview all candidates to be appointed to senior roles, following a review later this year.
Internal candidates facing promotion to key bank management jobs will also be interviewed.
Previously, the regulator’s scrutiny of prospective top bankers was a paper-based process involving checks on references from past employers and a questionnaire completed by individuals in the running to become directors or senior managers at the banks.
The questionnaires, which had to be endorsed by the recruiting financial institution, had to be approved by the regulator before the candidate could start the job.
Following Mr Elderfield’s changes, the regulator will question prospective senior bankers on their technical qualifications and competence for the specific job.
The newly appointed special adviser to Mr Elderfield, Con Horan, who was previously prudential director of the regulator, will lead the interviews with the regulatory head responsible for the institution recruiting the candidate.
Former Ulster Bank executive Michael Feeney, one of the regulator’s internal risk analysts, will also be involved in the interview process, as will risk advisers yet to be appointed by the regulator.
Mr Elderfield, the former banking regulator in Bermuda, took over as head of the financial regulation earlier this month. He will report directly to Central Bank governor Dr Patrick Honohan in the new Central Bank Commission, which will re-merge the bank and regulator under legislation to be introduced by the Government over the coming months.
A number of key senior executive roles within the Government-guaranteed financial institutions have yet to be filled. Allied Irish Banks (AIB) has said that it is seeking to appoint an external finance director and chief risk officer.
The bank declined to comment on how its recruitment process was progressing. The Educational Building Society (EBS) has yet to fill the post of finance director, a position which has been vacant since June.
