Members of the Central Bank's Commission have expressed the view that messaging around the inclusion of independent non-executive directors in new rules aimed at holding senior executives to account for their conduct is important, so it doesn’t act as a deterrent to people taking up such roles.
Minutes of the Commission’s January meeting show that the there was agreement that the tone around the rollout of the Individual Accountability Framework (IAF) needs to be balanced.
According to the record, there was also a consensus about the importance of emphasising the reasonable expectations and proportionality around the proposed regime.
"Members also welcomed the reference to this being primarily about good governance," the minutes stated.
The inclusion of independent non-executive directors in the framework was noted as significant and something that would "likely garner attention".
"Members were of the view that the messaging on this was very important and it should not be seen as any deterrent; the guidance provided would be important here," the minutes said.
Legislation giving effect to the new IAF was signed into law recently by President Higgins and last week the Central Bank launched a consultation process around how it should be implemented.
The committee also heard an update on the consolidation of the banking sector caused by the impending departure of Ulster Banka and KBC Bank Ireland.
Members were told there had been good progress, with around 60% of accounts in departing banks closed or inactive, though that figure has since risen.
Regarding customers with challenges, the Commission heard some of their accounts and loans have been included in the asset transfers to other banks, while some are outside and are part of separate transactions.
"It was confirmed that it remains a core focus that all customers would continue to receive the expected level of service and support," the minutes said.
"The Central Bank continues to be focused overall on ensuring there was no negative consumer experience and that all customers were treated fairly."
The members were also told that in terms of timelines, all account migrations and transactions have to first be executed.
"The actual process of exiting will have more dimensions, such as when licences are revoked, and this will continue into next year in terms of the Central Bank's work," the minutes said.
The Commission was also told that the Central Bank had recently met with the IDA Global Financial Services Team and had wide-ranging discussions.
Regarding the issue of authorisations for new incoming firms, the Central Bank told the Commission it had recently undertaken a "stock take on the pipeline" and was continuing to enhance its engagement with firms.
Another member of the Commission queried anecdotal reports concerning banks communicating with some customers on their employment status.
In response, the member was told that this would arise during mortgage applications where the lender would seek to understand the safety of employment and income streams.
"In any other circumstances where this might arise, it was noted that the Bank would want lenders to engage as soon as possible on any potential arrears situations," the minutes said.
