Ireland: Financial Sector Assessment Program-Technical Note on Banking Supervision

IMF Staff Country Reports, July 27, 2022

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Canonical URL: Ireland: Financial Sector Assessment Program-Technical Note on Banking Supervision

Supervision of less significant institutions (LSIs) is largely effective in Ireland.
The Central Bank’s supervisory approach to LSIs is intrusive and well-developed supervisory tools are appropriately applied.
The prudential regulation of banks has improved greatly since the 2016 Financial System Assessment Program.
The EU framework has largely managed to embrace international regulatory reforms, following up on the causes of the Global Financial Crisis.
Banking supervision has been tested by severe headwinds, with the final outcomes still in play.
Supervision faced major challenges from Brexit and the pandemic.

Intrusive supervisory approach applied to LSIs.
Well-developed supervisory tools that are appropriately applied to less significant institutions.
Notable improvements in prudential regulation since 2016.

Continued effectiveness of banking supervision depends on resolving several complicated problems (unspecified in this summary).
The full impact of severe headwinds remains unresolved ("final outcomes still in play").
Recent systemic shocks cited include Brexit and COVID-19.

The Technical Note provides the main recommendations to enhance the supervision of the banking activities conducted in Ireland with a direct bearing on its financial stability.

Source: Ireland: Financial Sector Assessment Program-Technical Note on Banking Supervision, IMF Staff Country Reports 2022/240.