Inquiry to complete work in 6 months

A Commission of Investigation into the banking crisis will complete its works within six months.

Minister for Finance Brian Lenihan said it was the Government's intention to avoid a "protracted, tribunal-like approach".

The commission will loook at the banks covered under the guarantee legislation and examine why there were "serious failures" to implement proper standards and controls and lapses of corporate governance and pruident risk management.

Mr Lenihan said the Government would be suggesting that Anglo Irish Bank and Irish Nationwide Building Society be specifically examined regarding their business models, strategies and lending policies that led them to severe financial distress.

External auditors may also come under the remit of the investigation, along with the main causes for the failures in performance of statutory roles and responsibilities of the Central Bank and Financial Services Authority of Ireland.

The terms of reference have been formulated and will be considered by the Oireachtas, with Mr Lenihan intending to finalise the terms of reference and have them approved before the end of June.

He said the Government intended to impose the time limit to ensure the findings of fact were before the Irish people and parliamentary committees as soon as possible.

Once completed, the report of the Commission of Investigation will be laid before the Oireachtas for further consideration.