On 16 February 2023, the Central Bank published a Dear CEO Letter addressing the Central Bank’s key regulation and supervision priorities for 2023.
The Dear CEO Letter sets out the economic context which informs the Letter and refers to the Central Bank’s most recent Financial Stability Review which outlined the key risks facing the financial system and global markets. The Dear CEO Letter refers to the central expectation that the Irish economy will continue to experience positive (although lower) growth in 2023 and notes that the Irish economy is facing increased downside risks given the size of the energy and inflation shock and the slowdown in the global economy. The Central Bank notes that this economic context will be central to their regulatory focus in 2023.
The key regulatory and supervisory priorities identified for 2023 include: (i) clear, open and transparent authorisation processes, (ii) assessing and managing risks to the financial and operational resilience of firms, (iii) progressing actions on the systemic risks generated by non-banks; (iv) oversight of the consolidation of the Irish banking sector, (v) consulting and engaging on various regulatory developments including the Consumer Protection Framework, the Individual Accountability Framework, the EU’s Anti-Money Laundering Plan, PSD2, DORA and MiCA, (vi) detecting and sanctioning market abuse and administering and enforcing financial sanctions, (vii) innovation and (viii) climate change risks.
Read our Financial Regulation Unit’s full briefing document by clicking the image below.