Public statement relating to Settlement Agreement between the Central Bank of Ireland and Irish Nationwide Building Society

Date15 July 2015
Settlement Agreement between the Central Bank of Ireland (the “Central Bank”)
and Irish Nationwide Building Society (“INBS”)
Following Central Bank Investigation INBS admits widespread breaches
INBS has entered into a settlement agreement with the Central Bank.
This follows the conclusion of the Central Bank’s most significant and extensive regulatory
investigation to date. The investigation commenced in 2010 and focussed on INBS’s commercial
lending and credit risk management processes. It related to INBS and certain persons who were
concerned in its management between 1 August 2004 and 30 September 2008 (the “Relevant
On foot of the investigation, the Central Bank formally referred the case against INBS and the
relevant individuals to Inquiry
. This is the first such referral under the Central Bank Act 1942 (as
amended) (the “Act”). This settlement concludes the case as against INBS. The case against the
relevant individuals will proceed to Inquiry.
As part of the settlement, INBS has admitted to having committed multiple breaches of financial
services law and regulation, including persistent failure to comply with its own internal policies and
procedures during the Relevant Period. As a result, the Central Bank has reprimanded INBS and
imposed the maximum applicable fine of €5 million. As INBS does not have any assets, it would not
be in the public interest to pursue the collection of the fine and, accordingly, the Central Bank will not
do so on this occasion.
The Director of Enforcement, Derville Rowland, has commented as follows:
The collapse of INBS cost the Irish taxpayer €5.4bn. It was a matter of significant public
interest to ensure that a thorough investigation was carried out by the Central Bank to
examine key issues arising within INBS between August 2004 and September 2008.

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