The Governor of the Central Bank is defending that fact that he has to inquire into the organisation he now leads.

Patrick Honohan is to conduct one of two inquiries into the banking crisis, ahead of a Commission of Investigation later in the year.

He has told an Oireachtas Committee he’s working from the assumption that the regulatory system failed, but delivered in other areas for the economy.

Mr. Honohan says the inquiry into his own organisation will be a balancing act.

“It might be considered surprising that it falls to me to inquire into my own organisation” he said.

“Obviously any surprise would be tempered by the consideration that I’m in place for less than six months; still, it’s not the easiest of balancing acts to ensure that I find out what needs to be known without damaging the functioning of the organisation”.

“Nevertheless, I am confident that I can do the job effectively and it is on that basis that I agreed to the Minister’s request” he added.