Transforming Regulation and Supervision

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In our Strategic Plan (PDF 5.69MB), Central Bank of Ireland committed to transforming its approach to regulation and supervision.

This recognised that in a rapidly changing world it is necessary to transform our approach to supervising the financial services sector to ensure we continue to deliver on our mandate into the future.

In delivering this strategic aim, we have focused on four key aspects:

  • Accelerating the evolution of our risk-based supervisory approach such that it becomes more data-driven, agile and scalable
  • Harnessing innovation in how we work through developing our data and tools (including supervisory technology)
  • Anticipating and supporting innovation in financial services and
  • Preparing for new EU anti-money laundering requirements and the establishment of the new EU agency AMLA.

Delivery in this work can already be seen in a number of improvements we have made over the last two years.

This includes the tools we are developing for our supervisors, and the improvements we have made to our technology portals for industry.

We have also enhanced our engagement with innovation in financial services, and will deliver our first Innovation Sandbox Programme later in the year.

Our transformation is also evident in the step change we have made in our communications with industry and our wider stakeholders – including increasing transparency and the clarity of our expectations.  

Examples of this includes the Financial Industry Forum and its subgroups, extensive engagement with our wider stakeholders, and the inaugural publication of the Regulatory and Supervisory Outlook Report and the Authorisations and Gatekeeping Report. (PDF 705.08KB)

New supervisory approach

We are now making important announcements about our future supervisory approach, which is a key part of delivering on the Transformation and Safeguarding themes of our organisational strategy.  

In designing our new approach, we reflected EU and global best practice while recognising also the particular strategic advantage the Central Bank has by virtue of having all elements of the central banking and financial regulation mandate in one organisation.

Our supervisory model will remain risk-based but is evolving to deliver a more integrated approach to supervision, drawing on all elements of our mandate (consumer and investor protection, safety and soundness, financial stability and integrity of the system).

This will position us better as an organisation to meet our objectives to ensure consumers of financial services are protected in all respects in a changing and increasingly complex and interconnected financial landscape.

It will enable us to continue to deliver on our mission and ensure the financial system operates in the best interests of consumers and the wider economy.

The new operating structure will include seven directorates, which will report into the existing Deputy Governors for Financial Regulation and Consumer and Investor Protection:

  • There will be three directorates responsible for sectoral supervision; a Banking & Payments Directorate, an Insurance Directorate and a Capital Markets & Funds Directorate. All three directorates will have integrated teams responsible for all elements of our mandate and supervising risks as they relate to the sector. This means supervising to protect consumer and investor interests, safety and soundness and the integrity of the system at a sectoral and an individual firm level.
  • There will be a Horizontal Supervision Directorate working in partnership with the sectoral supervisory teams on a system-wide and thematic basis.  It will provide specialist input on key cross-sectoral risks such as conduct, behaviour and culture, anti-money laundering and terrorist financing, financial resilience, operational resilience and technology risks.
  • There will also be a Supervisory Risk, Analytics and Data Directorate, a Policy and International Directorate and an Enforcement Directorate.

The Central Bank plans to implement these changes in early 2025.

Further information and engagement with stakeholders to explain the changes will take place as work progresses over the coming months.