Central Bank deputy governor Matthew Elderfield said concerns that Irish financial services has become over-regulated should be grounded in specifics.

“I would hope that debates on regulation and supervision are done transparently and that they are given short shrift if they take place as vaguely articulated concern about burden and competitiveness without being grounded in specifics to ensure an informed debate on policy,” he told the European Insurance Forum in Dublin today.

Allied Irish Banks deputy chairman Michael Somers said in recent interview that over- regulation may be prompting some banks operating in the International Financial Services Center in Dublin to move out.

Mr Elderfield said today that concerns over costs of regulation “need to be tempered by recollection of the terrible costs to Ireland’s taxpayers and society of financial failure.”

Mr Elderfield said the drawn out process of talks on so-called solvency II insurance regulations has resulted in “fatigue and exasperation” and costly preparation work for companies.

The insurance industry “urgently” needs the rules to assess risks in companies, boost transparency and governance, he said.

Political compromise is needed to break an impasse between European authorities on aspects of the rules, he said.