Minister for Finance Brian Lenihan said today he supported calls for an inquiry into the circumstances that led to the banking crisis.
But he insisted such an inquiry should wait until the National Asset Management Agency (Nama) had completed its work and the State’s banks had been recapitalised.
Speaking on RTÉ Radio today, Mr Lenihan said he accepted there had been “excessive lending across all institutions” preceding the crisis and some institutions had serious issues regarding corporate governance.
The Central Bank Governor Patrick Honohan last month called for an inquiry, saying such an investigation was necessary for society at large as many questions remained unanswered.
The two main Opposition parties have endorsed Mr Honohan’s view that an inquiry is needed.
What Mr Honohan "indicated is that some inquiry needs to take place" and "I agree with that," Mr Lenihan said today.
But Fine Gael finance spokesman Richard Bruton accused Mr Lenihan of prevaricating on calls for an investigation into the crisis, claiming the State’s "collapsed financial sector" ran the risk of repeating the mistakes that got the economy into crisis in the first place.
Mr Bruton said: “The Government and its authorities are now shaping public policies to reform our banking system. This should be done with the full knowledge of what went wrong. Otherwise, how can we be sure that we have rooted out the causes.”
“Ireland’s reputation is on the line. Outside investors are watching to see whether Ireland confronts the problem and fixes what is broken. This includes confronting activities that might damage reputations or force further resignations,” he said.
In his interview, Mr Lenihan said he was aiming to resolve the issue of recapitalisation regarding Irish banks in the first quarter of the year.
He claimed the economy was now turning a corner away from the recession.
Mr Lenihan insisted Government spending was "under control" and that the Government’s budgetary position is stabilising.
The Government has already injected a combined €7 billion into Allied Irish Banks and Bank of Ireland, and nationalised Anglo Irish Bank.
Bank of Ireland rose as much as 26.6 cents, or 20 per cent, to €1.59 in trading on the Dublin market today, while Allied Irish Banks climbed as much as 14.8 cents, or 12 per cent, to €1.35.