Irish banks have fallen into disfavor

Irish banks are subject to verification

In brief: The new rules are not pushed to the good. Irish Government tightens banking regulation.

At the beginning of next week, the financial controller of Ireland has announced plans to tighten control over the banks. For a long time, control was relaxed, and financial institutions were free to take risks, giving out loans, which led to the collapse of the banking sector.

Plans to tighten banking regulations related to the desire of governments to restore confidence in the banking system of the country. This will force some banks to extensively revise its own structure of doing business and should accelerate the recovery of the economy. On Monday, the regulator will publish a plan for legislation to strengthen banks’ liquidity buffer, the introduction of new requirements for the disbursement and management of financial institutions, as well as to reduce the risk of potential losses associated with any one company. As reported on Thursday informed source, the regulator will also introduce a national law on bankruptcy of banks. The basis was taken by the British experience. In addition, will set out a plan for monitoring units and subsidiaries of 32 banks, which are outside the Dublin offices of international financial services center, said a source. Promising low corporate tax rate and lightweight compared with the financial centers of Europe regulation, over the past 20 years, the Government of Ireland has attracted several foreign banks in the structure of the local international financial services center.

The regulator also intends to consider a limit on the amount of loans granted by banks a particular sector of the economy, as well as the size of the ratio in percentage between the principal amount of the mortgage loan and the appraised value of the asset, given his support. According to the agency, it should reduce the risks of the financial sector. Financial Regulator of Ireland uses the resources of the Central Bank. Formal merger of these structures occur this summer.

Ukrainian Globalist
2010-06-19 06:52, Economics.

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