Strategic Plan 2019-2021 - We Want to Hear Your Views - Better Regulation

Strategic Plan 2019-2021
  We Want to Hear Your Views

T: +353 (0)1 224 6278
E: strategy@centralbank.ie
www.centralbank.ie

Strategic Plan 2019-2021   Central Bank of Ireland   Page 2

Strategy 2021 – We Want to Hear Your Views
The Central Bank is developing its new Strategic Plan. This
plan will shape and guide the work of the Central Bank over
the next three years. We are seeking your views as part of the
development of the Plan.

In Section 1 you will find information on the role and
responsibilities of the Central Bank. In Section 2, we ask a
series of questions which we would like your views on and
Section 3 gives details on how to complete your submission.

    1. What the Central Bank does
The Central Bank has the following responsibilities:

Eurosystem Effectiveness and Price Stability
The Central Bank is responsible for contributing to the formulation of Eurosystem
monetary policy and helping to ensure that the Euro area inflation objective is
achieved. It supports the Governor in his role as a member of the Governing Council
of the European Central Bank (ECB). The primary objective of the ECB’s monetary
policy is to maintain price stability. In this pursuit, the ECB aims to maintain inflation
rates below, but close to, 2% over the medium term.

Stability of the Financial System
The Central Bank has an explicit mandate in domestic and European legislation to
contribute to financial stability in Ireland and at euro area and EU levels. It does so by
enhancing the macro-prudential policy framework by further developing a suite of
indicators to assess systemic risks, developing macro-prudential tools to address
emerging risks, conducting analytical research to inform on the calibration of these
tools, and evaluating the effectiveness of these tools in limiting systemic risk.

The Central Bank is also mandated to establish and operate a Central Credit Register
which will document loans to individuals and businesses. This will enhance the
Central Bank’s insight into credit information. When operational, all lenders will be
required to submit personal and credit information on loan agreements of €500 or
more to the Register.

Protection of Consumer of Financial Services
As the regulator of financial service providers and markets in Ireland, the Central
Bank has to ensure that the best interests of consumers are protected. The Central
Bank works to develop a positive consumer focused culture within regulated firms,
ensuring the consumer protection framework remains effective by reviewing,
developing and enhancing the protections in place and by influencing and shaping
European and international developments, and monitoring and enforcing compliance
with the required standards through themed reviews and inspections.

Regulation of Financial Institutions and Enforcement Actions
The Central Bank aims to ensure that regulated firms are financially sound and safely
managed. Regulation of financial institutions and markets is undertaken through
risk-based supervision, which is underpinned by credible enforcement deterrents.
This mandate is delivered through a range of tools which include supervising banks
within the Single Supervisory Mechanism framework, monitoring of regulatory
returns filed with the Central Bank, approval of persons under the fitness and probity

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standards, and taking enforcement actions when necessary. The Central Bank aims
to take a proportionate approach to its actions as an intrusive and assertive regulator
and does not seek to ensure a ‘zero-failure’ system of regulation and supervision, but
to safeguard that any firms that fail, do so in a way that avoids significant disruption
to financial services or consumers.

Regulatory Policy Development
A high quality and effective regulatory framework is essential in requiring financial
firms to operate to high standards as it provides the basis for supervising and
enforcing the key principles of organisational and financial soundness, consumer
protection, and effectively functioning markets.

The Central Bank engages actively in the European regulatory policy process,
contributing to the development of sound rules well adapted to the Irish context and
supporting the work to transpose those rules into Irish law and provide the
framework for their application to Irish financial firms and markets.

Efficient and Effective Payment and Settlement Systems and Currency
Services
The Central Bank, in conjunction with the ECB and other national competent
authorities, is responsible for ensuring that payment, settlement, and currency
systems are safe, resilient and efficient and that access to such systems is not
restricted. The Central Bank also ensures the provision of banknotes and coins and
other related currency services to the public, a key component of payments systems.

Independent Economic Advice and High Quality Financial Statistics
The Central Bank aims to ensure that its economic advice is forward looking and
independent and that statistics are robust and relevant. To achieve this, the Central
Bank undertakes data collection, statistical analysis, economic analysis and research
designed to inform economic policy making domestically and at the euro area level.
The analytical and statistical outputs are disseminated through various publications,
seminars and through ongoing interactions with government departments, academia
and commentators.

Recovery and Resolution of Financial Institutions
The Central Bank aims to develop a robust framework is in place to ensure that failed
or failing regulated firms go through an orderly resolution. The Central Bank requires
all banks and investment firms within scope to prepare recovery plans, which set
down the measures they would adopt in the event of their financial deterioration.
The Central Bank then puts feasible and credible resolution plans in place for those
firms.

    2. Questions

In the context of the responsibilities set out above and the Central Bank’s strategic
priorities over the next three years, we would like to invite your comments on the following
areas:
    1.   What should be considered by the Central Bank in responding to the current and
         emerging risks in the economy and the wider financial system?

    2.   What should the Central Bank focus on in terms of the regulation of firms and
         markets?

    3.   What should be considered by the Central Bank in respect of its financial conduct
         and consumer protection role?

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    3. Making your submission
The closing date for submissions is 8 June 2018.

Please make your submissions in writing and, if possible, by e-mail to
strategy@centralbank.ie.

When addressing any questions raised, please use the question number from this paper to
identify the question you are referring to.

In the event that you are unable to send your response electronically, please send it by post
to:

General Secretariat Division
Central Bank of Ireland,
PO Box 559,
Dublin 1

Please note that it is the policy of the Central Bank to publish all responses (including the
names of individuals and companies). The Central Bank reserves the right to not publish any
responses it deems inappropriate. As responses will be made available on the Central
Bank’s website, commercially confidential information should not be included in your
response. The Central Bank will acknowledge, by email, all responses sent by email.

General Secretariat Division
Central Bank of Ireland
9 May 2018

T: +353 (0)1 224 6278
E: strategy@centralbank.ie
www.centralbank.ie