A high-level report has recommended that auditors should give annual assurances that banks are complying with corporate governance rules to strengthen public confidence.
The Comptroller and Auditor General’s report on the Financial Regulator says there were shortcomings in the regulation of banks and that the regulator's actions were insufficient and late.
The report says little new on the banking crisis but does examine the secret loans to directors at Anlgo Irish Bank, mainly concerning €87m of borrowings extended to former chairman Sean FitzPatrick.
The report says the information about the loans was included in quarterly returns from the bank to the regulator, adding that the hidden loans could have been picked up much earlier.
The financial regulator did not use its discretion initially to alert corporate enforcer Paul Appleby, nor did it pursue the matter with Irish Nationwide, which warehoused the loans.
The report also said that the regulator's discussions with Anglo were not broadened to the bank's internal or external auditors.
John Buckley's report, completed before the announcement of an inquiry into the banking crises, also said there were shortcomings in the EU and further afield.
In the case of Ireland, the Regulator has begun a process of intensifying supervision of financial institutions, by having a more regular 'on-site' presence, increasing banks' reporting requirements and also attending some banks' meetings.
Mr Buckley suggests that in order to make regulation more accountable an annual statement on supervisory matters could be required by the Dáil from the regulator.
He says there should be a greater emphasis on examining actual financial transactions and balances in financial institutions, rather than just systems and controls.
The report says the regulatory system can work best when informed by on-the-ground evidence.
John Buckley recommends a 'tripartite' review by the Central Bank, the Regulator and the Department of Finance to look at the effectiveness of the measures they took individually and collectively during the crisis.
The report also shows that the running of the Financial Regulator's office cost €60m in 2008, with half of this accounted for by staff costs.
