Ireland: Financial Sector Assessment Program: Technical Note-Macroprudential Policy Framework
IMF Staff Country Reports, September 29, 2016
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- Canonical URL
- Ireland: Financial Sector Assessment Program: Technical Note-Macroprudential Policy Framework
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Bibliographic details
- Published: September 29, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475542240.002
Executive findings
- The current institutional arrangement in Ireland is appropriate for effective macroprudential policy and in line with IMF guidance.
- The Central Bank of Ireland’s analysis of systemic vulnerabilities is described as sophisticated and timely.
- The central bank has been introducing a range of macroprudential instruments to contain a buildup of systemic risk in the financial system.
- Ireland’s boom-bust experience amply demonstrates the need for forward-looking action to head off incipient financial problems.
Key themes and analysis
- Macroprudential framework
- Institutional arrangements support effective macroprudential policy and align with IMF guidance.
- Emphasis on forward-looking policy to prevent escalation of systemic risks.
- Central Bank of Ireland capabilities
- Analytical capacity: sophisticated and timely analysis of systemic vulnerabilities.
- Policy toolkit: introduction and use of a range of macroprudential instruments, including measures related to mortgages and housing prices (as indicated by subject keywords).
- Systemic risks highlighted
- Credit market dynamics and housing prices are focal vulnerabilities.
- Topics referenced: analysis of systemic vulnerability, delinquency ratio, ISCR, LTV, imposition of limit, ECB decision/object.
Policy recommendations (implied by findings)
- Maintain and strengthen the current institutional framework to support macroprudential responsibilities.
- Continue to deploy and refine macroprudential instruments to contain systemic buildup, with attention to mortgage-related measures and housing market developments.
- Ensure ongoing, sophisticated analysis of systemic vulnerabilities to enable timely, forward-looking interventions.
Content in this bundle
- Executive Summary