patrick honohan : examining the irish banking system introductory statement by mr patrick honohan, governor of the central bank & financial services authority of ireland, to the joint oireachtas committee on finance and the public service, dublin, 2 march 2010. * * * as you know, i have been asked by the minister for finance to prepare one of the two reports proposed by the government as the first stage of an investigation into the banking system. i have been informed that the context for these reports is that “ the government considers it essential to thoroughly examine the conduct of the banking sector in recent years in order to arrive at a fuller understanding of the root causes of the systemic failures that led to the need for extraordinary support from the state to the domestic banking system. ” this seems to me to be a good basis for proceeding. the two - stage approach to the investigation speaks of “ preliminary reports ” which will provide a basis for the government and the oireachtas to prepare the terms of reference for the second stage, which will involve the establishment of a statutory commission of investigation. the report which i am preparing is on “ the respective functions of the central bank and financial regulator ”, and it is to have regard in particular to their work “ in assessing and responding to risks to the stability of individual institutions as well as to the banking system as a whole ”. the report is described as “ preliminary ”, and of course is being prepared against a tight deadline, yet i believe it will be possible for me to establish a fairly clear and comprehensive understanding of the matters in question. i am hopeful that satisfactory conclusions can be reached on many issues, leaving only a relatively limited number of open questions of significance requiring further investigation. in parallel with my report, mr klaus regling and mr max watson, who appeared before this committee last week, are looking ( among other things ) at the performance of the banks and banking system generally. evidently, the full picture requires that dimension also : after all, it is to the directors of banks that we look in the first instance for safe and sound operation of their firms ; official prudential regulation can best be seen as a backstop designed to restrain the behaviour of imprudence or recklessness. clearly in this case neither the first line defence nor the backstop worked. the issues that i have been asked to examine include the performance of the respective functions of the central bank and the financial regulator over the period from the establishment of the financial regulator to the

sharon donnery : foundations for the future - technology as a source of good in the financial system remarks by ms sharon donnery, deputy governor of the central bank of ireland, at the fintech ireland summit 2024, dublin, 28 november 2024. * * * i am delighted to be here to speak at the fintech ireland summit 2024 and many thanks to peter for the invitation. 1 being asked to share thoughts on the topic of fintech is no easy task – given it is an area and term which encompasses so much. not least due to the fact that it is a portmanteau, combining two of the fundamental features of modern life – finance and technology. but also because of the breath of activity it increasingly covers. for fintech is synonymous with a host of new companies – disrupting other financial services providers, and providing choice and efficiencies through new products and new ways of serving customers. but " fintech " and indeed simply " tech " are also an increasingly integral feature of how incumbent financial services providers operate and deliver their services – as well as an integral part of the functioning of the financial system itself, given the degree to which it now uses and relies on technology. central banks and regulators too are increasingly to the fore in terms of embracing and harnessing technology for their own use, in addition to their other roles in managing, anticipating and regulating innovation in the system. while there is much to cover under the broad umbrella that is fintech, for the purpose of today's remarks i will focus on providing some regulatory and supervisory perspectives on technology and financial services – including what we are seeing, and how we are dealing with rapid innovation in the financial sector. neither good nor bad – supervising innovation in financial sector contrary to some beliefs, central banks and regulators welcome innovation. while we of course don't embrace it indiscriminately, our mandate is to deliver in the public interest. and innovation done well is clearly in the best interest of consumers and the wider economy. but, as i have said before, not all innovation is good – and not all innovation is done well. 2 and so while we very much support the use of technology to improve the system and outcomes for consumers and the wider economy, it is crucial that such technology is 1 / 8 bis - central bankers'speeches adopted and deployed in a way that delivers on its benefits, without introducing undue risks. in that regard i am often asked about our supervisory approach to innovation