Sir, - The Central Bank strongly rejects certain assertions in your report on financial regulation (Business, June 3rd).
1. It is ridiculous to suggest that the Central Bank has shown an unwillingness to take on new roles. In recent years, we have taken on various new responsibilities - for building societies, stockbrokers, investment intermediaries, collective investment schemes, etc. The bank remains willing to take on, at any time, whatever responsibilities are assigned to it by the Government.
2. Any differences in how we regulate banks compared with other financial institutions reflect different legal responsibilities under EU law and not the attitude of the bank, as suggested.
3. The argument about "lack of accountability" is unfounded. The governor of the bank is fully responsible to the board in the execution of financial regulation. He appears before Joint Oireachtas Committees, as required. The Minister for Finance may oblige the board of the bank, or the governor, at any time, to consult with him in regard to these functions.
4. There is no "move" to have the external reserves managed by the National Treasury Management Agency. This would be neither legally nor technically possible. These reserves are in the ownership of the European System of Central Banks.
5. On other aspects of financial regulation covered in this article, we must await the publication of the committee's report. Yours, etc.,
Hugh O'Donnell, Press Office Central Bank of Ireland Dame Street, Dublin 2