The Central Bank has set out new proposals on fitness and probity standards in financial institutions.
The bank's head of financial regulation, Matthew Elderfield, also warned this morning that bank bosses failing these standards would be sacked. Mr Elderfield was speaking to the Foresight Business Group in Trinity College.
Mr Elderfield also said the Central Bank would review the competence and track record of all executive and non-executive directors at its state-supported banks.
'We will use our new investigative powers, where appropriate, to ensure that the people in those positions meet the required level of fitness and probity,' Mr Elderfield said.
'Where they fall short of the required standards, we will not just remove individuals, but we will also, where appropriate, issue notices to prohibit individuals from continuing as directors,' he added.
In a consultation paper published this morning, the Central Bank said it would review of the fitness and probity of all existing executive and non-executive directors at the Irish banks which have received Government support.
'We will assess the incumbent directors against the new statutory standards, including, where it is relevant, their competence and track record in the period leading up ot the financial crisis,' Mr Elderfield stated.
He said that he would be writing to all bank directors to advise them that this new process will apply to anyone that plans to be in office by next January to allow them an opportunity to make their plans accordingly.
The new requirements will apply to all entities regulated by the Central Bank, with the exception of credit unions. The Central Bank this morning published a consultation paper on the issue, inviting interested parties to comment by May 20.
