Central Bank Governor Patrick Honohan has said that he is approaching his investigation into the banking system under the assumption that there were failures in the financial regulatory system.
Professor Honohan, who is conducting one of the two preliminary Government inquiries into the banking system, was speaking at an Oireachtas Finance Committee.
He said he was confident that it will be possible to establish a clear and comprehensive understanding of the factors that led to the banking crisis.
Mr Honohan said he believed there would be a limited number of questions that would require further probing by the Statutory Commission of Investigation.
He said some of the work was already being proceeded with and that there would be cooperation with the other preliminary inquiry to ensure no overlap between the two.
He said he would be reporting by the end of May this year.
Credit Union proposals to be brought to Cabinet
Minister for Finance Brian Lenihan will bring proposals to Cabinet shortly to change lending rules for Credit Unions, which only allows 20% of their loan book to be made up of loans exceeding five years or more.
The Joint Oireachtas Committee on Economic and Regulatory Affairs heard that the rule, known as Section 35, is creating great difficulties in the Credit Unions and for an increasing number of borrowers who try to reschedule their loans due to the recession.
Department of Finance Official Eamon Kearns said that some Credit Unions are telling borrowers that they can't extend their loans because it runs the risk of exceeding the 20% limit.
While not saying what the specific proposals are, Mr Kearns said the changes will allow borrowers greater flexibility in repaying their loans.
