Ireland: financial regulation reform

Many countries are examining the manner in which their financial markets - and banking sectors in particular - are regulated. In yesterday's supplementary (i.e. emergency) budget the Minister for Finance, Mr Brian Lenihan T.D., announced changes in the regulatory structure of the financial system in Ireland. To quote directly from Mr Lenihan's announcement:

The role of the Central Bank of Ireland will be reformed to place it at the centre of financial supervision and financial stability oversight, providing for full integration and co-ordination of the prudential supervision and stability of individual financial institutions with that of the financial system as a whole. The Central Bank of Ireland will in the future be headed by a Commission, chaired by the Governor.

... I have asked the former Deputy Governor of the Bank of England and former member of the UK Monetary Policy Committee, Sir Andrew Large, to advise on the process to select a new Head of Financial Regulation within the new institutional structure".