Honohan: ‘Collapse of banking system could easily happen again’
The introduction of a simple clause into the role of CBI has sent shivers through one part of the market and enthusiasm through another
Patrick Honohan’s response to a recent pitch from BlackRock and State Street to restore the Central Bank’s role in promoting the Irish financial sector was succinct.
“I don’t know whether to laugh or to cry,” the former Central Bank governor said.
Both financial institutions believe a financial crash-era policy change should be reversed to once again give the Central Bank of Ireland (CBI) the dual mandate of regulation and promotion of the industry.
The proposal, as first reported by the Business Post, has sent shivers through one part of the market and enthusiasm through another. It comes down to a tension that is bubbling between the regulator and the funds industry, which employs 34,000 people in Ireland and is a significant driver of the economy.
