The former senior manager of commercial lending at Irish Nationwide Building Society has been fined €23,000 by the Central Bank over his participation in breaches of financial services law.
Tom McMenamin has also been disqualified from taking a management position at a financial service provider for 18 years.
Mr McMenamin admitted he had played a role in multiple failures by the building society to adhere to its policies in relation to commercial lending and credit risk.
This included not properly documenting commercial loan applications, not following the correct approval processes, not following processes in relation to loan to value ratios and not monitoring commercial lending.
The Central Bank said that the breaches merited a penalty of €250,000, however legislation prohibits it from imposing a fine that could make a person bankrupt. Giving regard to Mr McMenamin's current financial position, the regulator said it reduced the fine to €23,000.
The Central Bank said Mr McMenamin's failings "demonstrated a serious lack of due skill, care and diligence in carrying out his role and responsibilities as Senior Manager of Commercial Lending ROI.
"Mr McMenamin accepts that he participated in a pattern of systemic policy breaches by INBS leading to poor risk management, ineffective governance and an overall culture of high risk lending.
"In this respect, his actions and/or omissions were not deliberate or dishonest. INBS' financial instability lead to its ultimate collapse."
In deciding its penalty the regulator said it took a number of factors into account; including the "reckless nature" of Mr McMenamin's conduct, the "significant degree" to which he failed to fulfil his role and the extended duration of the admitted breaches.
In February, the Central Bank fined INBS' former chairman Michael P Walsh €20,000 for his admitted participation in "certain prescribed contraventions of financial services law".
Mr Walsh was also disqualified from managing a regulated financial service provider for three years and received a reprimand from the Central Bank.
The bank's inquiry into Michael Fingleton, John Stanley Purcell and Gary McCollum is ongoing, and it said that the settlement with Mr McMenamin had no impact on those cases.
