in underlying culture. we endeavour to foster a strong culture of compliance, with firms and individuals within firms acting in the best interests of their customers backed up by comprehensive and enforceable legislation, rigorous supervision, a credible threat of enforcement and powers of redress when consumers have suffered detriment. as i have stated, although the tracker examination will still take some time, the central bank is determined to ensure that every impacted customer is identified and appropriately redressed and compensated. on the issue of insurance, the central bank will continue to work with this committee, the working group and other stakeholders in ways that are appropriate to our mandate. looking ahead, brexit poses a number of risks and challenges for the economy, for institutions and for businesses. in line with our mandate, we will continue to highlight these risks, engage with institutions so they are adequately prepared, and provide a transparent and efficient authorisation process for any potential entities that choose to establish here. i look forward to discussing these issues further with you as well as the other issues you raised in my invitation. 7 / 7 bis central bankers'speeches

patrick honohan : international credit and financial market integration – after the storm? opening remarks by mr patrick honohan, governor of the central bank & financial services authority of ireland, at the 8th infiniti conference on international finance, trinity college, dublin, 14 june 2010. * * * it is a pleasure to open the 2010 infiniti conference, an acronym i understand to mean “ international financial integration studies at trinity ”. research on international financial policy issues has never been more important in ireland and abroad than it is now. the great financial crisis has thrown up many key questions for research. our own experience in ireland has many international financial ramifications. for, even if i have been emphasising recently how much of ireland ’ s banking difficulties were home grown, they have certainly occurred in an international context. ireland is one of the most globalised economies in the world – one indication : the ratio of exports to gdp approaching one ( which, by the way, you will realise is not a theoretical upper bound ). and its property price and construction bubble was financed to an important extent from abroad. over a four year period 2003 – 2008 net indebtedness of the banks to the rest of the world jumped from 10 per cent of gdp to over 60 per cent. interestingly, this foreign borrowing was not only used to finance the domestic property bubble but also to finance property development abroad – mirroring a common phenomenon of high income countries incurring foreign debt to acquire foreign equity – in this case equity in the property market some of which did not perform too well. and there was another international development that was important in igniting the property boom. in line with shiller ’ s theory of how bubbles get going, a myth that a new economic era was unfolding drove expectations. thus there was not only an unrealistic expectation that the irish economy would grow beyond the sustainable level of output – close to the production frontier and at full employment – which it had achieved in the celtic tiger period based on sustainable improvements in competitiveness and efficiency. in addition, the sharp fall in nominal and real interest rates on euro entry led many investors to exaggerate the degree to which a higher capitalization rate would apply to long - lived assets such as property. what new areas come to the fore now as topics for study? i would like to emphasise a number of issues which relate to the interaction of fiscal and banking policy. the direction of the interaction is two - way. banks