Ireland needs to actively market international financial services

Ireland should lose no time in promoting appropriate international financial services. The global financial services industry has been in a state of flux but is now beginning to think more strategically about its future. As we resolve issues in the domestic banking market with the imminent implementation of NAMA and the new appointments to and restructuring of the Central Bank and Financial Regulator we need to highlight Ireland's advantages as a location for global financial businesses. Both state agencies, and industry bodies and their advisors should promote our country as ‘open for business’.



Pictured at the 2009 Irish Banking Federation Conference sponsored by PwC are left to right:
Pat Farrell, Chief Executive, Irish Banking Federation, Minister Brian Lenihan, T.D.,Chand Kohli, Partner, Banking and Capital Markets, PwC

Speaking at the 2009 Irish Banking Federation Conference, Chand Kohli, Partner, Banking and Capital Markets, PwC said:

“Financial Institutions must improve their methodologies and processes for identifying, assessing, managing and monitoring risk in all its forms across the enterprise.  Regulatory reform in Ireland and Europe must support that focus and improve transparency for investors. For some, balance sheets will need to be scaled down and leverage reduced. However it is important that regulators get the balance right and not attempt to eliminate risk entirely.  This would drive innovation to unregulated entities and likely be self defeating. We need to accept that regulation will not prevent all failures.”

Twenty years ago we commenced the build up of international financial services in Dublin through a clear low tax strategy, a good work force, a reasonable cost of doing business, sensible regulation and the political support to drive the development of the International Financial Services Centre. We succeeded beyond the dreams of the founders of the IFSC. In common with many other countries we have suffered a setback. Real economic and reputational damage has been incurred in the credit crisis as a result of both institutional and regulatory failures. We should absorb the lessons of this crisis to improve the infrastructure for financial services in Ireland.

We should not be ashamed of what was built, or throw out the many good things created here.  We have a well developed infrastructure for certain existing types of global banking business, such as leasing and securitisation, and a proven capacity to manage the needs of new innovations in banking products.     

Chand Kohli added:

“It is important that we rebuild confidence in the Irish financial system at an international level.  Better regulation is an important element in rebuilding trust and should have positive effects on investor sentiment towards Irish banks. Any future regulatory regime should be robust but also business friendly and accessible.  Proper resourcing will be critical having the people with the appropriate skills, industry experience and a clear vision and understanding of the requirements at hand.”

Chand Kohli concluded:  

“We must get our cost competitiveness right. Many organisations have realigned their internal cost structures but more work remains in order to rebuild our national cost competitiveness.”  

“Finally we must be more proactive in the championing of our international financial services abroad. We can be proud of what we have achieved to date, and confident of our product in the global marketplace. Ireland has done well in attracting foreign multinationals and much potential still exists here.  We have a huge opportunity here with our highly skilled workforce and low tax regime.”

The conference is sponsored by PwC

About PricewaterhouseCoopers
PricewaterhouseCoopers provides industry-focused assurance, tax and advisory services to build public trust and enhance value for our clients and their stakeholders. More than 163,000 people in 151 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.

"PricewaterhouseCoopers" refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.