The new Financial Regulator has said he intends to implement a framework of assertive risk-based regulation underpinned by the threat of enforcement.
Matthew Elderfield made his comments during a speech to the AGM of the Irish League of Credit Unions in Limerick this morning.
The Regulator said that his office will insist that the biggest and riskiest firms manage themselves much better and that firms and their management are held more accountable for their actions.
He told the conference that it was clear that weakness in regulation here had contributed to the financial crisis and that those weaknesses need to be addressed and that we keep pace with best practice internationally.
The management of high impact firms and those with a poor track record in particular must convince his office that they are reducing risk through their actions, the Regulator said.
Where this does not happen, Mr Elderfield added, his office must be prepared to act if necessary.
This willingness to act will mean that senior management will take the regulator's concerns more seriously in the first place, he said.
In relation to the credit union sector, Mr Elderfield said the reserves and liquidity position of most credit unions have improved over the last 12 months.
However, there had been some worrying developments, he added, particularly in relation to loan arrears which have risen sharply over the last two years.
The level of rescheduled loans has also risen as credit union members come under increasing financial strain, he said.
Mr Elderfield warned this year would be another challenging one for the credit union movement, and he urged individual unions to remain vigilant by assessing and reassessing their positions, and challenging their assumptions.
