Macroprudential Policy in Ireland

“The Central Bank of Ireland’s analysis of systemic vulnerabilities is sophisticated and timely. The Central Bank of Ireland has the power to request data directly from regulated entities, and also has powers to require information from unregulated entities under the Central Bank Acts. The Central Bank of Ireland also has powers to change the levels and regulatory perimeter of macroprudential instruments under national law, such as the LTV and LTI limits. There is a dedicated division (Financial Stability Division) that leads systemic risk analysis and macroprudential policy discussions. The biannual Macro-Financial Review (MFR) covers well the stability of individual sectors and property markets. There is, however, still room for further improvement, in particular as to filling data gaps. First, information on domestic and cross-border bilateral liability positions of banks and non-bank financial institutions is still incomplete in places. Second, detailed information on important elements of commercial real estate market activities is lacking. Third, balance sheet data for non-financial corporations is not fully available. Fourth, the absence of a comprehensive credit register precludes the Central Bank of Ireland from connecting credit information of borrowers across financial institutions in Ireland. Moreover, the Macro-Financial Review can usefully cover financial interconnectedness among sectors, as well as within each sector”, according to an IMF report on Ireland.

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