Ireland: Financial System Stability Assessment
IMF Staff Country Reports, July 7, 2022
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- Canonical URL
- Ireland: Financial System Stability Assessment
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Bibliographic details
- Published: July 7, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400213564.002
Financial system growth and complexity
- The Irish financial system "has grown rapidly and in complexity, especially after Brexit."
- Ireland "has become a European base for large financial groups."
- Growth has increased cross-border linkages and systemic complexity.
Risks to financial stability
- Primary risk drivers identified:
- "a much larger and more complex financial system"
- "persistent legacy issues"
- emergent risks from "non-bank lending, Fintech, and climate change"
Stress testing and resilience
- Stress tests "confirmed banks’ resilience to severe macrofinancial shocks, with some caveats."
Supervisory capacity and priorities
- Assessment of supervision:
- Supervisory resources and capacity are "broadly adequate" but "need to keep pace with a growing and more complex sector with significant cross-border linkages."
- Efforts needed to "further strengthen supervision of banks’ credit risk."
- Need to "develop capacity and skills on new areas such as climate, non-bank lending, and Fintech."
Insurance oversight
- Insurance supervision recommendation:
- Oversight "should prioritize intra-group complexities."
Resolution and crisis management
- Recommendations to enhance crisis preparedness:
- "Resolution and crisis management can be enhanced through greater planning and collaboration between the Central Bank and the Department of Finance"
- Aim: "to bolster the ability to deal effectively with institution failures and systemic crises."
Content in this bundle
- Ireland: Financial System Stability Assessment; IMF Country Report No. 22/215; June 15, 2022