## Ireland: Financial Sector Assessment Program: Technical Note-Macroprudential Policy Framework

_IMF Staff Country Reports, September 29, 2016_

## Source details

**Canonical URL:** [Ireland: Financial Sector Assessment Program: Technical Note-Macroprudential Policy Framework](https://www.imf.org/en/publications/cr/issues/2016/12/31/ireland-financial-sector-assessment-program-technical-note-macroprudential-policy-framework-44309)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/ireland-financial-sector-assessment-program-technical-note-macroprudential-policy-framework-44309/index.md)
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## Bibliographic details
- Published: September 29, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475542240.002

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### 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.

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## Content in this bundle

- **Executive Summary**
  - [Executive Summary (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2016/_cr16316.pdf.md){rel="alternate" type="text/markdown"}
  - [Executive Summary (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2016/_cr16316.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/ireland-financial-sector-assessment-program-technical-note-macroprudential-policy-framework-44309_