The new regulatory environment for our banks has been described as ‘intrusive’ and was outlined this afternoon.
The Central Bank says it will shut down any bank that does not adhere to the rules.
The Central Bank says it will make life difficult and expensive for banks which fail to manage risk adequately.
In a policy document outlined to the banks in private this afternoon the Central Bank says the new ‘intrusive’ approach to regulation that has been adopted since the financial crisis emerged will continue.
Banks that engage in better behaviour and are ‘top of the class’ as the Central Bank puts it will not be as heavily scrutinised.
Regulators say they want to create an environment that offers incentives for good behaviour though insist that is not a return to the light touch regulation of the past.
But those that do not stick to the rules are being warned they will be stopped from doing business until they comply.
