OVERSIGHT:THE EUROPEAN Central Bank looks set to have a significant oversight role in the future of the Irish banking system as a result of the central role the governor of the Irish Central Bank will play in the changes to the Irish banking system outlined yesterday.
Yesterday’s legislation contains various references to the consultative role the Central Bank governor will assume in the coming months and years as rapid changes to the banking system are implemented. The governor is also a member of the European Central Bank’s governing council.
The legislation states that any direction order proposed by the Minister will be subject to consultation with the governor. The Minister will also be obliged to consult with the head of the Central Bank regarding the issue of subordinated bank debt and the transfer of assets and liabilities.
The legislation says the independence of the Central Bank will not be affected by the Bill.
