Relationship between the irish Central Bank and the Financial Regulator

S4MSON · 14-08-2009 11:26PM #1

Hello,

I hope some of you can help me with some information. I`m writing a student research project about the "Banking Supervision in Europe" and I want to explain the Irish structure with his legal basis, but I cant find enough information. I`m very glad, if you can help me to find some information about this topic.

I must know / must describe the relationship between the irish Central Bank and the Financial Regulator! Is the Financial regulator independent? Are the institutions bound by instructions from the financial minister or the government?

Yours sincerely

John from Germany

P.S.: I search on Wiki and the offical websites but i cant find the information... please help me!

loobylou · 15-08-2009 10:34AM

Bitte
http://www.financialregulator.ie/about-us/Pages/default.aspx

S4MSON · 15-08-2009 12:10PM

Thank you, but i visited this site (this staff I mean, when i write "the official websites"), but I cant find the information I`m searching for.

I search for some explanation who make the decisions in the procedures. Normally the National Central Banks are independent with reference to the money politic vis-a-vis the governments instruction and the politics. The Financial Regulator in Germany for example is bound by instruction from the financial minister.
It would perfect if somebody can give me the explanation by means of paragraphs or articles.

ressem · 15-08-2009 04:21PM

From the address announcing the regulators establishment in May 2003...

http://finance.irlgov.ie/Viewtxt.asp?DocID=1655&CatID=1&m=&UserLang=GA&StartDate=01+January+2003

The IFSRA is being established as a constituent part of the newly named Central Bank and Financial Services Authority of Ireland. It will have all the powers and independence necessary for the successful regulation of the Irish financial sector, but with sufficient integration with the Central Bank structure to allow for a continuous exchange of information and expertise between them.

Essentially, it has it's own board appointed by the minister for finance, and any actions it carries out are actions of the central bank.

The details are described in the act establishing it, from page 27 on...
http://www.oireachtas.ie/documents/bills28/acts/2003/a1203.pdf

S4MSON · 19-08-2009 04:14PM

Hi,
thank you for your help, ressem.
I searched for the specifications in the Central Bank and Financial Services Authority of Ireland Acts 2003 and I have found some good information. I had understood that the Central Bank (CBFSAI) is independent from the financial minister within the scope of the ESCB-Role (the Prize stability). The financial minister may only ask for reports, but he can`t demand something.
Is that correct?
I have some problems to understand the relationship between the IFRSA and the financial minister. I think the IFRSA must report the financial minister about his strategic and financial plan for the next financial year, but I don`t find something about the legal and technical oversight. I s there none?
Is the financial regulator in Ireland (IFRSA) also independent as the central bank, maybe because the IFRSA is “under the top/roof” of the central bank? If yes, how can it work?
In Germany the financial minister is responsible for the legal and professional supervision of the german supervisory authority, BaFin. This is necessary, because of the the supervisory authority spend tax mone.
I hope u can help me...

ressem · 20-08-2009 02:16PM

You're not alone in that...
From the ECB and JC Trichet.

http://www.finance.gov.ie/viewdoc.asp?fn=/documents/Publications/legi/ecbopinioncbfsai2.doc

The lack of a consolidated central bank statute creates a structure for Ireland’s central bank that is somewhat lacking in transparency. The twin goals of clarity and transparency would suggest that at the first suitable opportunity the Irish Government should undertake a consolidation exercise. In addition, a full consolidation of Ireland’s central bank statutes would greatly assist the ECB in fulfilling its ongoing task of responding to consultations from the Irish authorities on draft legislation within the ECB’s field of competence. In this context it is noted that Ireland’s central bank statutes are the only central bank statutes in the Eurosystem which have not been consolidated.

(but our 'government' thinks blasphemy laws are more important.)

http://www.irishstatutebook.ie/1998/en/act/pub/0002/print.html

(4) The Minister may, on such occasions as he thinks proper, request the Governor on behalf of the Board or the Board to consult with the Minister in regard to the execution and performance by the Bank of any function and duty imposed on the Bank, other than those imposed by the Treaty or the Statute, and the Board shall comply with every such request.

(5) Subject to the requirements of the Treaty, the Statute, the Central Bank Acts, 1942 to 1997, and any other enactment, the Minister may, on such occasions as he shall think proper, request the Governor on behalf of the Board or the Board to inform the Minister in regard to the pursuit of the primary objective imposed on the Bank by subsection (1) of this section, and the Board shall comply with every such request.

The minister instructs the central bank through statutory instruments, which are are made public in Iris Oifigiuil and look like

http://www.irishstatutebook.ie/2008/en/si/0099.html

Also
http://www.irishstatutebook.ie/1998/en/act/pub/0002/sec0005.html

As an example, the process is described here, where it explains how directions regarding international sanctions are put into effect.

http://www.centralbank.ie/abt_ifsarticle.asp?ID=1

Relationship between the irish Central Bank and the Financial Regulator

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