Fine Gael Galway Senator, Fidelma Healy Eames has today (Tuesday) said that in light of the current state of our banking system consideration should be given to a European regulatory model to regulate our banks.

“The entire nation is holding its breath today to hear what is contained in the Budget. Meanwhile, the banking problem has not gone away, it is still a monster. We have learned this morning that there is approximately €56 billion of toxic debt in the Irish banking system. We are not sure of the Minister’s plans in this regard, perhaps some kind of asset management model, but this will not be enough to ensure confidence in our financial system.

“The general view of the public is that the banks will revert to their bad ways unless they are properly held in check. Young people in my constituency have been getting phone calls from banks offering them up to €20,000 in personal loans, yet the banks will not lend to businesses in need of credit which beggars belief. What type of behaviour is this by our banks?

“It is time we had a ‘banking big brother’, by which I mean it is time we called for a European bank regulatory model to keep our banks in check. We must have objectivity and independence. Our current operation is far too small and cosy. The banks have cost us our international reputation and we are now considered one of the most troubled economies in Europe. The banking crisis has clearly shown the need for an overhaul of our system. To this end consideration should be given to the idea of a European regulatory model.”