From the Attic Archives – Cork Examiner 23rd December 1994.
This article should provide a bit of a laugh for all those out there whose lives have been destroyed by our corrupt political/administrative/regulatory system.
A bank must be seen to be sound and viable and a safe haven for deposits, according to Central Bank Governor, Maurice O’Connell.
Banks need to be profitable, he told an anniversary seminar of the Irish Bankers’ Federation.
A bank must have a good credit rating. This is why high capital adequacy and other prudential requirements are laid down.
The Central Bank has an obvious interest in seeing that the profits of the banks which it supervises are adequate but not excessive, taking one year with another.
The Irish banking sector has recently been the target of much criticism. It has been accused of ignoring the needs of the small business sector, of paying unduly generous salaries to its senior executives and of making huge profits.
Much of the criticism was simply populist, unfair and unreasonable.
But he added that financial institutions are in a position of some privilege because of their influence in the economic life of the country and a public perception cannot be dismissed.
This imposes certain community obligations that must not be abused.
For Ireland’s financial institutions to develop in a healthy environment, there were two other requirements besides adequate profitability, said Mr. O’Connell.
Supervision must be to the highest standards to demonstrate full confidence in our system.
The Central Bank is well aware of its responsibility in this regard and is committed to applying the highest prudential standards.
Lastly inflation should be minimised, if only for its corrosive effect on the financial system, said Mr. O’Connell.