central bank of ireland strategic plan eng

8/2/2019 Central Bank of Ireland Strategic Plan Eng

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Central Bankof IrelandStrategic Plan

2010 - 2012


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Eecutie Summar 2

Itrouctio 4

Part A Eirometal Cotet a Ke Challeges 5

Part B High Leel Goals 3

Appei Orgaisatio Chart 3

TABLE O COnTEnTS


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2

Whats new?

Recued pprch regheig he fcil em

n Itegrate micro-macro approach to assessig sstemic acial stabilit a heaig o emergig issues

n Esure that baks meet creible ew capital requiremets (takig ull accout o epecte losses a tough stress

sceario) eablig them to recoer market coece a the capacit to u themseles

n Maage trasitio rom curret goermet guaratee

n Implemetatio o a ew approach to bakig superisio

Deelpig e regulr mdel: Ehced uperir cpci r deeci d crreci

prblem

n Actie, ope a challegig superisor egagemet with rms to esure that risks are ull uerstoo a

sucietl mitigate

n Pro-actie assessmet o total busiess risk, ot just cotrols a rules

n Regulator approach will target icrease superisor resources a impose requiremets i a wa that is

proportioate to risk

n A shit i the approach towar presumptio o more igorous eorcemet backe b suciet resources to

represet a creible threat o actio

Iercig ih e EU uperir bdie d implemeig e regulr direcie

n Wholehearte egagemet with Europea Sstemic Risk Boar a Europea Sstem o iacial Superisors

n Traspositio/applicatio o eolig iteratioal reorms i regulatio icluig ew EU irecties or bakig,

isurace a us iustr

Buildig cumer preci

n Reiew Cosumer Protectio Coe a Miimum Competec Requiremets

n Make chages to the Mortgage Arrears Coe a uertake work o cosumer iebteess

n Esure backlog o oerchargig cases are resole quickl

Ecmic li

n Greater attetio i ecoomic research o uctioig o the acial sstem (icluig creit, iebteess)

n uller collaboratie egagemet with ecoomists i uiersities, ESRI a wier public serice

Pme d Currec

n Pla a strog role i the eelopmet o a natioal Pamets Strateg

n Implemet Target 2 Securities a other Eurosstem iitiaties i pamets a settlemets area

n Improe currec serices, particularl through Bakote Recclig ramework

C recern Moe towars 00% charge-back arragemet (to reuce cost to tapaer)

ExECUTIvE SUMMARy


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3

High Leel Goals o the Cetral Bak o Irela

Outlie below are our high leel goals a the actios we will be takig to achiee them.

1. Cribue Eurem eeciee d price bili

We are resposible or maitaiig price stabilit through moetar polic ormulatio at ECB leel. We aim to

ehace the eectieess o our participatio i moetar polic ormulatio through the proisio o qualit brieg

or the Goeror o Goerig Coucil issues, while recogisig that the Goeror is solel resposible as a member

o the Goerig Coucil. We are also resposible or the eectie implemetatio o moetar polic.

2. Cribue fcil bili

We hae a legal maate, i both omestic legislatio a uer the Maastricht treat, to cotribute to acial

stabilit both i Irela a across the euro area. A ke ocus i the perio ahea is to pla our part i the resolutio

o the acial crisis. This iclues moitorig oerall liquiit or the bakig sstem.

3. Eure prper d eecie reguli fcil iiui d mre

The objectie is to miimise the risk o ailure b esurig compliace with pruetial a other requiremets.

Howeer, a ew approach to superisio is eee, ocusig o a risk base approach supporte b ope a

challegig ialogue with rms b assertie sta, uerpie b a creible threat o eorcemet. The purpose o

securities market regulatio is to promote a eciet a air securities market.

4. Eure h he be iere cumer fcil erice re preced

The objectie is to protect customers a iestors through couct o busiess rules a other measures.

5. Pride idepede ecmic dice d high quli fcil iic

We also cotribute to ecoomic eelopmet b uertakig ecoomic aalsis a research esige to iorm

ecoomic polic makig across a rage o areas. A ke priorit is to proie authoritatie ecoomic aice to

Goermet b esurig that such aice is releat a timel. The proisio o high-qualit a timel statistical

iormatio is essetial or this a also to proie a soli basis or ecisios.

6. Eure efcie fcil erice irrucure he ecm: pme d currec

Our oersight o pamet sstems role is aime pricipall at esurig that pamet a securities settlemet

sstems are sae, eectie a eciet a that access to such sstems is ot restricte. We will pla a strog role

i the eelopmet o a natioal Pamets Strateg. With regar to our currec serices, we mauacture, issue,

store, process a autheticate bak otes a cois.

7. Mximie ur peril efciec d c eeciee

We will esure that the orgaisatio has the capabilit to elier the ke challeges set out i this Pla a that our

operatios are carrie out i a eectie a eciet maer.


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4

This Strategic Pla has bee prepare agaist the

backgrou o ew legislatio, epecte to be eacte

b quarter 3 200, to create a sigle uitar orgaisatio

the Cetral Bak o Irela with resposibilit or both

cetral bakig a acial regulatio. The ew structure

will replace the curret goerace structure o the Cetral

Bak a iacial Serices Authorit o Irela. The

Cetral Bak will be resposible or both the superisio

o iiiual rms a the stabilit o the acial sstem

geerall. The purpose o the ew orgaisatio a thepropose statutor objecties are:

As a member o the Europea Sstem o Cetral

Baks (ESCB), the pricipal objectie o the Bak

is to maitai price stabilit. I aitio the Cetral

Bak Reorm Bill, 200 states that the Bak also has

the ollowig objecties:

n The stabilit o the acial sstem oerall

n The proper a eectie regulatio o acial

istitutios a markets, while esurig that the

best iterests o cosumers o acial serices

are protecte

n The eciet a eectie operatio o

pamet a settlemet sstems

n The proisio o aalsis a commet to

support atioal ecoomic polic eelopmet

n The ischarge o such other uctios a

powers as are coerre o it b law

The chages to the regulator structure are beig brought

about to help aress eciecies i the regulator sstemthat became apparet urig the acial crisis. There are

parallels with the ew arragemets propose at EU leel

esige to esure greater cohesio betwee oerall

acial stabilit polic a the pruetial superisio o

iiiual istitutios. The reorms will be supporte b a

sigicat epasio o regulator capacit withi the ew

Cetral Bak. Substatial aitioal sta with the skills,

eperiece a market-base epertise eee to meet

the objecties o the ew structures are beig recruite.

This Strategic Pla is or the three ear perio 200 to

202. The resolutio o the bakig crisis is the major

task to be complete oer the lietime o this pla. This

will be achiee through implemetatio o a ew moel

o regulatio a a ehace assessmet o acial

stabilit. There are 2 mai parts to the ocumet:

n Part A escribes the eirometal cotet i

which this pla has bee prepare a outlies the

sigicat challeges we ace as a orgaisation Part B articulates our high leel goals, the

associate actios we will take a eals with

implemetatio a orgaisatioal issues

The ke to implemetig our strateg is the eicate

work a commitmet o our sta who hae alrea mae

a sigicat cotributio i aressig the challeges we

ace. The iolemet o the sta i helpig ree a

ehace the orgaisatios strategic approach oer the et

three ears will be ke to its success. I eepl appreciate their cotributio oer the past ears, which has bee a

time o eceptioal icult a challege. I look orwar

to workig with them to oercome the challeges a to

help restore the acial sstem to ull health.

Pric HhGoeror

InTROdUCTIOn


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5

The impact o the bakig crisis o the ecoom

omiates the eiromet i which the Cetral

Bak ow operates. The relui he

crii puttig the bakig sstem back o a soli

ootig, a thereb helpig to stregthe the

ecoom is the major challege a task to be

aresse oer the lietime o this strategic pla.

This task requires the eelopmet aimplemetatio o a e mdel reguli,

a assertie risk-base moel, uerpie b

a creible threat o eorcemet. This ees to

be couple with a ehace assessmet o

fcil bili, with a broaer a eeper

leel o aalsis. It also requires the careul ogoig

mgeme liquidi uppr to the mai

omestic baks. The Cetral Bak is committe

to these objecties as part o its oerall ocus ohelpig to esure that the bakig a acial

serices sectors are put o a sou ootig i orer

to allow them to sere the broaer ees o the

ecoom.

The epth o the curret bakig crisis is i large part

attributable to home grow actors. yet it occurre

agaist a backgrou o iteratioal eelopmets

which acilitate the creatio o ulerabilities a

the sharpl epose them. Iteratioal acial

market pressures cotribute to the impact o

Irela. Importat iitiaties are beig take at

the EU a iteratioal leels to help resole the

crisis a to set ew, more robust, staars. This

iclues the establishmet o sigicat ew EU

boies to stregthe the assessmet a mitigatio

o macro a micro pruetial risks, oe o the ke

recommeatios o the de Larosire report. I its

ieril eggeme the Cetral Bak

will be require to ull pla its part i cotributig

to the eelopmet a implemetatio o these

iitiaties.

These ew challeges are couple with a

requiremet or the orgaisatio to esure that

it cotiues to perorm its other ogoig majoructios. irst amog these is the requiremet

to cotribute to price bili. I Irela,

this is achiee through our membership o

the Eurosstem a through the Goerors

participatio i the Goerig Coucil o the ECB.

It is also o ke importace that the Bak cotiues

to esure that the acial serices irastructure

i the els o pme, ecuriie d

ch eliers the ecessar eciecies to theecoom.

While arious measures hae esure that a soli

start has bee mae i reersig the broaer

ecoomic owtur i Irela, major challeges

remai. The Cetral Baks role i proiig

authoritatie dice Germe a to the

other major stakeholers i the ecoom is more

releat a ecessar tha eer.

Much work has bee achiee i the area o

cumer preci i recet ears. This has

helpe cosumers through the proisio o better

iormatio a the itrouctio o the Cosumer

Protectio Coe coerig such issues as sales

processes, isclosure a air treatmet.

PART A EnvIROnMEnTAL COnTExTAnd KEy CHALLEnGES


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Resolig the Bakig Crisis

The ailures o the Irish bakig system, allie with the

ramatic eclie i ecoomic output a icrease i

uemploymet, hae ha a seere eect o the ecoomy

a the public aces, with the impact elt across all o

society.

The seere shortage o liquiity a the solecy problems

reeale i the crisis ha a sigicat impact o the operatios

o baks. The ee or exceptioal steps to cotai the

crisis through irect acial sector iteretios, as well

as moetary a scal policy resposes was recogise i

all o the coutries with weakee baks. Recapitalisatios,

eposit guaratee extesios, the proisio o creit a

liquiity, a programmes to eal with istresse assets

were all uertake to support acial istitutios, while

cetral baks cut iterest rates to historically low leels a

itrouce a rage o o-coetioal moetary policy

measures. I Irela, ollowig the itrouctio o a

extesie guaratee o bak liabilities by the Goermet

i September 2008, key measures hae iclue:

n Measures to esure aequate recapitalisatio o the

baks, icluig through the proisio o aitioal

resources by Goermet, iolig the acquisitio

by Goermet (through the natioal Pesio

Resere u) o equity stakes i the mai baks

n Establishmet o the natioal Asset Maagemet

Agecy to buy property relate loas rom the baks

at a price relate to market alue

n Itrouctio o a Coe o Couct o Mortgage

Arrears a Busiess Leig to Small a MeiumEterprises

n Establishmet o a Iquiry ito the causes o the

acial crisis

The Cetral Bak has a key role to play i resolig the

bakig crisis. The objectie is to restructure a recapitalise

the bakig system, so that the baks emerge as sel reliat

etities without a excessie cost to the taxpayer a with

the ability a motiatio to proie acial serices to

the ecoomy.

We will ee to sharpe our assessmet o acial

stability. This will iole a umber o actios icluigimproig our aalysis o eelopmets i the acial

markets as a whole. We will cotiue to eelop iicators

a aalysis o acial system stress a icrease the use

o stress testig to assess the impact o ay eterioratio i

the macro ecoomy o the health o acial istitutios.

To esure that the risks ietie i our iacial Stability

Reports are aresse, we ee to eelop more eectie

macro pruetial istrumets. A complete reiew o the

stress testig methoologies will also be uertake. A

ew approach to commuicatig the key messages o our

acial stability work is eisage.

A key task i assessig the baks restructurig proposals

is to esure that they meet our pruetial a acial

stability objecties a that sustaiable busiess moels

are beig propose. We will also proie aalysis a

assist i the EU approal process or the restructurig o

the bakig sector. We hae set ew capital requiremets

a it is our target that most baks will be i compliace

by the e o 200. Oe o the key actios to be take is

to graually reuce the ee or reliace o our omestic

baks o cetral bakig liquiity proie through the

Eurosystem. This is particularly importat as Eurosystem

moetary policy operatios are likely to reert oer time

to more ormal leels as coitios geerally stabilise.

It will also be ital to esure that the collateral proie

or such operatios cotiues to meet all the ecessary

requiremets.

We also ee to maage the trasitio rom the curret

Goermet guaratee. All coere creit istitutios hae

bee requeste to reiew their cotigecy liquiity auig plas to esure prepareess or the trasitio to

ay ew guaratee structure that may be put i place a

ultimately, to operate i the absece o ay Goermet

guaratee. We will cotiue to ocus o the ee or

coere creit istitutios to pla a maage their exit

rom such support schemes i a orerly maer. We

beliee that the achieemet o a balace uig prole

or all creit istitutios is a ital compoet o a stable

bakig system.


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BankInG sUPERvIsIon: oUR nEw aPPRoaCH

We hae recetl publishe our ew approach to Bakig Superisio, the mai elemets o which are that:

n We are chagig the structure or bakig superisio

Restructure the orgaisatio to elier more itrusie a challegig superisio, recruit aitioal sta a

establish a Risk Eperts Pael

n We are chagig our superisor culture a approach

Complete pruetial capital aequac reiew

Stregthe superisor reiew a ealuatio process

Implemet a iteriew a assessmet process or seior appoitmets i baks a ete to other

istitutios

Implemet a ew risk assessmet moel

Reise approach to halig oerchargig issues

Reiew process a methoolog or assessig cosumer charges

Pruetial superisio themes or 200 are ew mortgage creit staars; remueratio; risk maagemet

a goerace; a bak strategies

n We are broaeig our approach to acial stabilit

Uertake assessmet o ata ees or reiews o acial stabilit

deelop a ehace acial stabilit sstemic risk assessmet ramework a a associate

commuicatios strateg

Couct i-epth comparatie aalsis o the perormace o the Irish bakig Sector to iorm iscussios

o the uture structure o bakig i Irela

Implemet urther eelopmet o baks specic quatitatie risk assessmet moels

Uertake etaile micro leel aalsis o importat couterparts o the acial sector: o-acial

corporatios a househols

Publish the iacial Stabilit Report i a ew ormat

n We are ehacig the Regulator ramework

Cosult o a implemet ew corporate goerace requiremets or baks a isurers; regulatios

o relate part leig; a reise ramework or esurig that the maagers a irectors o regulate

istitutios are t a proper; iteral goerace requiremets a remueratio staars or acial

istitutios; ew rules o large eposures; ew staars o creit risk maagemet, aluatio a liquiit;

reise miimum competec requiremets, cosumer protectio coe a possibl o the coe o coucto mortgage arrears; statutor switchig coe

Cosult o a implemet the Comptroller a Auitor Geerals recommeatio o auitor attestatio

regarig the uctioig o the iteral corporate goerace regime i istitutios

n Issues requirig urther research

Reiew structure o omestic saigs iustr, i collaboratio with other releat agecies

Issue iscussio paper o a cetral creit register

deelop proposals i cojuctio with dept o iace o a special resolutio regime

Research the easibilit a esirabilit o imposig preetermie staar sectoral cocetratio limits o

sstemicall importat creit istitutios


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8

deelopig a new

Regulator Moel

We ee to oerhaul our superisor approach to take

accout o the lessos leare rom this acial crisis. We

ee to aress the obious weakesses that hae cause

problems here a also keep pace with the reorms that

are beig itrouce elsewhere as lessos are beig leart

worlwie rom the acial crisis.

no regulator sstem ca guaratee a zero ailure

outcome. Howeer, a sstem base o cocetratig

eorts a resources where the greatest risks lie, miimises

the risk o ailure. It is our itetio to implemet a

ramework o assertie risk-base regulatio uerpie

b the creible threat o eorcemet. Our emphasis will

be o:

n Risk mitigatio a challege

n Assessmet o busiess risk, ot just cotrols a

rulesn Usig the risk moel to sstematicall assess rms

a set the superisor agea

A eicate iisio with special iestigatie uits is

beig establishe to eal with eorcemet matters. A

oerall assessmet o risks will orm the basis o makig

ecisios o resourcig the superisor uctio a the

require leel o egagemet with the acial serice

proier or sector. It will be importat to be balace

a proportioate epeig o the risk o the rm or

sector. This will help esure that superisor itesit

will be proportioate to the risks pose. or eample,

sstemicall importat istitutios ca epect a higher

leel o superisor egagemet a scruti.

While ma o the require chages i regulatio are i

lie with those occurrig at Europea leel, there is also

a ee to make specic improemets to the omestic

regulator ramework i a umber o areas. I this regar,

we are epectig ew statutor powers to esure that

those resposible or maagig acial serice proiers

cotiue to be t a proper to o so. Other challeges

iclue the settig a moitorig o staars ocorporate goerace so as to esure that goo practice

is ollowe i relatio to issues such as boar compositio,

remueratio, accoutabilit a auit.

This will require the ecessar resources to esure that the

regulator sstem here ca elier o its maate, meet

these ew challeges a keep pace with eolig best

practice iteratioall. A sigicat icrease i rot lie

regulator sta is require. This is ke to esurig that

the appropriate leel o scruti is applie to the mostsstemicall importat rms a those that are attractig

the higher leels o risk. There will also be greater emphasis

o eamiig the tess a probit o those eterig, or

moig withi, the iustr at a seior leel. A greater

emphasis o risk aalsis a polic eelopmet also

requires suciet resourcig.

The ew eorcemet iisio will be resource at a leel

suciet to appl a creible threat o actio where that is

ecessar a to hae the releat iestigatie epertiseaailable. The etire approach to eorcemet, icluig

the curret Amiistratie Sactios Proceures, will be

reiewe at a earl stage a we thereore pla to cosult

o our eorcemet strateg later this ear.

Europea a Iteratioaldeelopmets

As a member o the Eurosstem, we hae a resposibilit

to promote price stabilit withi the euro area. This role is

uertake through participatio o the Goeror i the

ECB Goerig Coucil where ecisios o iterest rates

are take. Thereore we ee to assist the Goerors

participatio i ESCB ora b proiig qualit aalsis,

research a brieg.

The EU has embarke o a programme o reorm that

relates to both the structures a legislatie ramework or

acial stabilit a superisio.


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Sigicat ew EU boies are beig establishe. The

Europea Sstemic Risk Boar will both assess a seek tomitigate risks to acial stabilit properl a switl while

the Europea Sstem o iacial Superisors will help

eelop ew superisor staars a urther ehace

superisor cooperatio across the EU.

new directies to stregthe acial superisio are

beig itrouce, primaril i the areas o capital, liquiit

a goerace. Iteratioal capital requiremets or

baks are beig reiewe a will be stregthee.

Legislatio has bee aopte or is uer cosieratio iareas such as:

n Stricter capital requiremets or baks a

iestmet rms

n A stregthee EU ramework or eposit protectio

n Ehace regulatio o creit ratig agecies, hege

us a priate equit houses

n Reorm o remueratio practices i acial

istitutios

A ehace regulator regime or the isurace sector

kow as Solec II is i the process o beig eelope

a implemete. The us iustr will hae the

UCITS Iv directie eacte, which will acilitate cross

borer marketig o UCITS b simpliig amiistratie

proceures. EU legislatio esige to protect iiiual

cosumers is also plae or i the process o beig

implemete, i the areas o eposit guaratee, cosumer

creit a retail iestmet proucts.

Amog the ke challeges we ace i regar to this are:

n To cotribute to the eelopmet o polic i the

iterests o the EU a Eurosstem

n To esure that Irelas iterests are well represete

b makig a eectie cotributio as techical

aisor to the Goermet i egotiatig a

trasposig the irecties

n Establishig superisor sstems to implemet the

ew requiremets

n Commuicatig the ew requiremets to iustr

a other stakeholers

domestic Ecoomic Aice

The seere iteratioal recessio has amplie a

alrea upreceete cotractio i the omestic

ecoom sice 200. The pace o eclie i ecoomic

actiit has moerate sigicatl i the last ear a the

outlook is or a resumptio o moest growth urig 200,

although growth will ot be sucietl strog to allowuemplomet to all sigicatl or some time. The risks

acig the Irish ecoom remai sigicat, arisig rom

the cotiuig iteractio o egatie growth, acial

sector stress, a the state o public aces.

While a soli start has bee mae i reersig the

ecoomic owtur, the ecoom cotiues to ace

major ecoomic challeges oer the et ew ears.

We will assist Goermet b proiig timel aice

o how best to meet these challeges. Our role is to actas a iepeet a authoritatie commetator o

the ecoom a aisor to the Goermet o polic

iitiaties. We o this b uertakig ecoomic aalsis

a research o strategic themes a will commuicate

the results to as wie a auiece as possible.

We ee to esure that our ecoomic research programme

is targete so that our aice to Goermet is releat

a timel. or eample, we will proie research a

aice o policies/mechaisms or ehace aailabilito creit o a pruet basis a how istresse loas

shoul be maage. ormulatig ecoomic aice to

the Goermet o policies that woul eable baks to

epa leig to creit worth borrowers, while at the

same time esurig aequate capital a liquiit buers

to protect the stabilit o the acial sstem, is a particular

challege. A ew ata collectio sstem to itegrate ata

o SME leig withi the eistig statistical ramework

will be implemete, a the ee to ehace statistics i

other areas, such as collectig o-balace sheet eposureswill be eplore.


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0

Our ecoomic research priorities iclue macro

orecastig, ifatio a competitieess aalsis, publicaces, labour market, housig, a trae a balace

o pamets. or the uture, particular attetio will be

pai to the role o the acial sector i these a relate

els icluig a specic ocus o particular issues, such

as leig to the SME sector. The challege is to use our

strog ecoomist resources withi the Cetral Bak so that

the are leerage so as to erie the maimum beet

rom iteractig with other ecoomists i uiersities, the

Ecoomic a Social Research Istitute a the public

serice.

As the leaig proier o acial statistics, we will

cotiue to eelop this area a to collect aitioal

releat ata to eable the proisio o iorme aalsis

a commetar. We will also collaborate with the CSO

a other boies to esure that ata releat to polic

ormulatio is proie a that the bure o respoets

is miimise. We will also take steps to improe the rage

a releace o statistics publishe a the issemiatio

o these ata.

Pamets a Currec

We proie a rage o serices to the bakig sector

a the ecoom as a whole. I relatio to pamet a

securities settlemet sstems, our remit is to esure that

the are sae, eectie a eciet, a that access to

such sstems is ot restricte.

Compare to ma other EU coutries, we cotiue to hae

a sigicat epeec o cash a cheques. Cosumers

a busiesses i some other EU coutries hae moe to

ast a eciet electroic pamets sstems, the beets

o which iclue improe saet a securit, icrease

eciec a spee o pamet. The Sigle Euro Pamets

Area (SEPA) iitiatie is itroucig commo electroic

pamet istrumets (creit trasers a irect ebits)

that ca be use to make euro-eomiate pamets.

The SEPA project applies throughout the euro area (aalso to all other EU a EEA member states). We will pla

a strog role i the eelopmet o a natioal Pamets

Strateg which will elier these beets i Irela.

The Eurosstem has itrouce the TARGET 2 real-time,

gross settlemet (RTGS) sstem or settlemet o large-

alue pamets i euro, both omesticall a cross-

borer a a sstem or securities settlemet (TARGET2

Securities, or T2S) is curretl beig eelope.

We aim to improe the currec serice we proie. The

implemetatio o the Bakote Recclig ramework,

which obliges proessioal cash halers to autheticatebakotes beore the are re-issue, will ehace the

securit a itegrit o the currec a the qualit o

bakotes i circulatio. We will assess the role we pla i

the cash ccle a cotiue to liaise with the retail baks

to esure the sstem is eciet while at the same time

meets the ees o the retail sector a the public. The

cotiue prouctio o bakotes i the Currec Cetre

will be re-ealuate as the Eurosstem moes towars the

itrouctio o a seco series o bakotes. We will also

reiew our strateg i relatio to coi mauacture aissue.

Other challeges or us to aress iclue:

n Proisio o busiess cotiuit serices or the

bakig sector to eal with potetial crises

n Implemetatio o ehacemets to the settlemet

process, particularl relatig to securities a

collateral maagemet

Builig o CosumerProtectio

The ecoomic owtur has le to icrease

uemplomet a lower salaries or ma people,

resultig i cosumers acig iculties with regar to

their acial circumstaces. These iculties ca iclue

issues such as mortgage arrears, house repossessios,poor iestmet perormace a lack o access to suitable


12/34

loas. The withrawal/ow-sizig o some retail baks

will also hae a impact o competitio a cosumerchoice.

Strog cosumer protectio measures are a cotiuig

requiremet a it is essetial that we buil o the goo

work alrea i place. Our ultimate objectie is to hae a

acial serices iustr where cosumers iterests are

ull protecte a our challege is to make cotiue

progress towars that goal. I practice this meas that

acial cosumers are recommee proucts that are

appropriate to their ees a that the receie a highstaar o ogoig a ollow-up serice.

A ke objectie i the comig perio will be to reiew the

Cosumer Protectio Coe. This will be a opportuit

to take stock o the Coe a see where it ees to

be stregthee. We will also reiew our Miimum

Competec Requiremets so that cosumers ca be

coet that the people proiig them aice are

qualie a competet. I the meatime, the programme

o thematic reiews, where we assess the cosumerprotectio practices i rms i a particular area a publish

the results will cotiue.

Oe o the most pressig areas o cosumer protectio

cocer is that o mortgage arrears. The Mortgage ArrearsCoe was recetl amee to gie home owers more

time ow twele moths to work out a solutio to a

arrears problem beore legal actio ca be take b their

mortgage proier. A thematic reiew will be uertake

to eamie how mortgage proiers are complig with

the Coe. We will also cotribute to the recetl orme

Goermet workig group to help eelop other

solutios to alleiate the arrears problem.

I aitio acial serice proiers will hae tomoe much more quickl to clear backlogs i halig

oerchargig cases. irm ealies will be set i this

regar or commuicatig with customers a proiig

compesatio. Eorcemet actio will ollow i our

timelies are ot met.

The ee to esure that their customers are treate airl

must be top o the agea or regulate rms.


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2


14/34

3

This chapter sets out our high leel goals a the actios we will be takig to achiee them.

1. Cribue Eurem eeciee d price bili

We are resposible or maitaiig price stabilit through moetar polic ormulatio at ECB leel. We aim to

ehace the eectieess o our participatio i moetar polic ormulatio through the proisio o qualit brieg

or the Goeror o Goerig Coucil issues, while recogisig that the Goeror is solel resposible as a member

o the Goerig Coucil. We are also resposible or the eectie implemetatio o moetar polic.

2. Cribue fcil bili

We hae a legal maate, i both omestic legislatio a uer the Maastricht treat, to cotribute to acial

stabilit both i Irela a across the euro area. A ke ocus i the perio ahea is to pla our part i the resolutio

o the acial crisis. This iclues moitorig oerall liquiit or the bakig sstem.

3. Eure prper d eecie reguli fcil iiui d mre

The objectie is to miimise the risk o ailure b esurig compliace with pruetial a other requiremets.

Howeer, a ew approach to superisio is eee, ocusig o a risk base approach supporte b ope a

challegig ialogue with rms b assertie sta, uerpie b a creible threat o eorcemet. The purpose o

securities market regulatio is to promote a eciet a air securities market.

4. Eure h he be iere cumer fcil erice re preced

The objectie is to protect customers a iestors through couct o busiess rules a other measures.

5. Pride idepede ecmic dice d high quli fcil iic

We also cotribute to ecoomic eelopmet b uertakig ecoomic aalsis a research esige to iorm

ecoomic polic makig across a rage o areas. A ke priorit is to proie authoritatie ecoomic aice to

Goermet b esurig that such aice is releat a timel. The proisio o high-qualit a timel statistical

iormatio is essetial or this a also to proie a soli basis or ecisios.

6. Eure efcie fcil ervice irrucure he ecm: pme d currec

Our oersight o pamet sstems role is aime pricipall at esurig that pamet a securities settlemetsstems are sae, eectie a eciet a that access to such sstems is ot restricte. We will pla a strog role

i the eelopmet o a natioal Pamets Strateg. With regar to our currec serices, we mauacture, issue,

store, process a autheticate bak otes a cois.

7. Mximie ur peril efciec d c eeciee

We will esure that the orgaisatio has the capabilit to elier the ke challeges set out i this Pla a that our

operatios are carrie out i a eectie a eciet maer.

PART B HIGH LEvEL GOALS


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4


16/34

5

Cribue Eurem eeciee d price bili

We are resposible or maitaiig price stabilit i Irela through the implemetatio o ECB ecisios o moetar

polic. As a member o the ECB Goerig Coucil, the Goeror has irect iput ito moetar polic ecisios a other

major polic areas. While the Goeror has sole ecisio makig power i relatio to ECB moetar polic ormulatio,

the eectieess with which he ca perorm his uties i this respect ma be ehace b the qualit o moetar polic

brieg, statistical iormatio, a aalsis a research proie. We are cotiuall striig to improe our cotributio

i this area.

To esure that our aalsis aapts to chagig circumstaces, we will moitor releat market tres, iicators a

istrumets, a collect sure iormatio as appropriate. The implemetatio o moetar polic will cotiue throughparticipatio i the arious ope market operatios o the Eurosstem. We will also seek to ifuece ECB ecisios o

moetar polic operatioal issues through our actie participatio i arious ECB committees.

There is a tre towars specialisatio amog atioal cetral baks withi the Eurosstem. Withi our limite resources,

we will cotiue to ieti a pursue opportuities to make a sigicat cotributio to the work o the Eurosstem.

Accorigl, we will prioritise these areas where we ca make the most sigicat cotributios a eelop urther

epertise i them.

The strategies a actios we will take to achiee this goal are:

stRatEGy aCtIon

Ehce he eeciee urpricipi i mer plicrmuli

n Support the Goeror i plaig a eectie role atthe Goerig Coucil b proiig real ecooma moetar aalsis

Impleme Eurem peri

efciel

n Implemet ew ECB iitiaties, icluig measures

propose to aress tesios i acial marketsn Participate i Eurosstem ope market operatios

Cribue he eecie uciig he Eurem

n Cotiue to actiel participate i the ESCBcommittee structures

HIGH LEvEL GOAL


17/34

Cribue fcil bili

We hae a eplicit maate, i both omestic legislatio a uer the Maastricht treat, to cotribute to acial stabilit

both i Irela a across the euro area. A importat elemet o our work will be to proie aalsis regarig the acial

eiromet, with particular ocus o the risks a ulerabilities. We will cotiue to eelop iicators a aalsis o

acial sstem stress a publish the results withi our iacial Stabilit Reports.

We will broae a eepe our assessmets o acial stabilit through risk ieticatio, mitigatio a appropriate

eorcemet, where ecessar. Our immeiate priorit is to assist the Goermet i the process o restructurig a

recapitalisatio o the bakig sstem so the emerge as sel reliat etities. I this regar our role is to:

n Broae a eepe assessmets o acial stabilit icluig stress-testig methoologies

n Proie iput a aalsis to the Europea Cetral Bak, Europea Commissio a the soo to be establishe

Europea Sstemic Risk Boar

n Moitor a aalse liquiit positios o the acial sstem

n Complete eelopmet o the ramework or sstemic impact assessmet, so that it ca be use eectiel i the

cotet o crisis maagemet

new iteral structures hae bee establishe to proie a more cohesie approach to acial stabilit withi the

orgaisatio. The iacial Stabilit Committee is ow chaire b the Goeror a iclues seior sta rom across theregulator a cetral bakig epartmets. The Committee also meets o a more requet basis tha i the past. We are

also epaig our epertise i aalsig eelopmets i ieret sectors a markets rom a acial stabilit perspectie

with the recruitmet o more specialise sta. new applicatios or authorisatio will also be subject to itesie assessmet

rom a acial stabilit perspectie to esure that the will ot epose the acial sstem to a risk o serious istabilit.

Both iteral a publishe iacial Stabilit Reports a assessmets will also icorporate specic recommeatios

to eectiel mitigate the risks that are ietie. We will moitor eelopmets i the methoolog o acial stabilit

aalsis iteratioall as well as uertakig a strategic program o research omesticall. I particular, a major epasio i

our abilit to moitor a aalse macro-acial eelopmets at the EU leel is plae i orer to support the Goeror

i his work as a member o the ew Europea Sstemic Risk Boar.

ollowig the acial turmoil i the past ear, ew resposibilities hae eole i the area o liquiit moitorig a

aalsis which will cotiue alog with our moitorig o resere requiremets. We will ehace our collectio o market

itelligece.

We will ehace the crisis-maagemet capabilit o the orgaisatio to meet a uepecte a uplae chages i

the acial markets. We must be prepare or a uture acial ailures, which arise i spite o our best eorts. We will

assist the Miister i the work ecessar to establish a resolutio regime that is feible eough to hale the ailure o a

acial istitutio. We ee to be i a positio to respo quickl a ecietl a hae a sstem or preictig where

the et potetial crisis ma come rom. I this cotet, we are also iole i cross borer stabilit groups.

HIGH LEvEL GOAL 2


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stRatEGy aCtIon

Brde d deepeeme fcilbili

n Ehace macro pruetial assessmet b upatig eistigiicators a eelopig ew iicators

n Uertake risk assessmet o Iteratioal acial serices ao bak acial etities

n Ehace omestic crisis maagemet polic a proceuresn Assess ew applicatios or authorisatio rom a acial

stabilit perspectien Uertake research o strategic acial stabilit issuesn Ehace a eelop stress testig capabilitiesn Publish iacial Stabilit Reports which ieti the risks i the

sstem, the mitigats that ee to be put i place a the actioto be take

Cribue fcil bilieme he Eurpesemic Ri Brd d CrBrder bili grup

n Ehace aalsis o Europea macro acial coitiosn Cotribute to iteratioal polic ormulation Cotribute to Europea cross-borer crisis maagemet

iitiaties

oeree he liquidi hefcil em

n Ehace acial market itelligecen Moitor a orecast acial sstem liquiitn Assess eligibilit o assets or use as collateral i Eurosstem

operatiosn Moitor resere requiremets o acial istitutios

ai i relui hefcil crii

n Oersee eit rom Goermet guaratee to coere istitutiosn Set ew capital requiremets or baksn Liaise with natioal Asset Maagemet Agecn Proie assistace to the Commissio o Iestigatio ito the

acial crisis


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8

Eure prper d eecie reguli fcil iiui d mre

Our approach to pruetial superisio is esige to promote the saety a souess o iiiual acial istitutios a

the protectio o customer assets, through compliace with capital, solecy a other requiremets.

Compliace is moitore by assessig how acial serice proiers maage the risks they take o. Our primary objectie is to

esure that mitigatio actios are take to reuce the risks to acceptable leels. Compliace moitorig also ioles esurig

that regulatory returs are submitte a assesse, through o-site reiew meetigs a ispectios a haig issues resole

o a timely basis. A itegral part o our egagemet with rms is to hae a ialogue which is ope a challegig. Where o

compliace is etecte, we will take appropriate actio to esure that ot oly is the cosumer etrimet resole but also to

act as a icetie or proactie compliace i the uture. We will eorce the tess a probity regime esurig that etratsto the key approe positios at boar a seior maagemet leel are take up by people o competece a itegrity.

As ote aboe, we pla to eelop a risk assessmet moel. We will cosult publicly o the eelopmet o this moel which

will establish the ramework or the allocatio o resources a the operatio o o-site a risk base superisory work.

Our strategic approach to superisio is to set parameters withi which the risks iheret i the purchase or sale o a acial

serice are miimise. Those acial serice proiers that pose the greatest risk to either the stability o the acial system or

eal irectly with customers are subject to higher leels o scrutiy. The iheret impact o certai types o acial istitutios

is so high that they require more itesie superisio, or example systemically importat baks. We will ajust our approach

i a proportioate maer to the leel o risk. As we hae limite resources, the risk-base approach meas that we apply ourlimite resources to those acial istitutios with the highest impact a risk prole. It also meas that we caot commit

to proie routie risk assessmets or the smallest rms whe we eelop our risk moel. neither is it easible to eelop a

o ailure regime, as the cost o this woul be prohibitie. Our preerre approach is to proactiely aticipate a mitigate

emergig risks a problems. Howeer, i some cases it will be ecessary to respo where a acial ailure occurs.

This more itesie approach to superisio requires icrease sta resources a aalytical skills a a more requet leel

o egagemet with regulate acial serice proiers. Oer the perio o the pla we will buil a ew risk moel which will

iclue the ollowig eatures:

n determies how to eectiely moitor market eelopmets i orer to ietiy potetial risks

n Has a mechaism or ietiyig, moitorig, a mitigatig risks to the acial system regarless o the source o the

risk or the istitutios i which it is create

n Ieticatio o risk-base criteria, such as a istitutios potetial to create systemic problems or harm cosumers, or

etermiig the appropriate leel o oersight or acial actiities a istitutios

n Is calibrate to the risks pose by the rm a sector, thereby leaig to the icrease resources beig allocate to the

superisio o those rms a sectors which pose the greatest risk

n Iclues a assessmet o the istitutios busiess moel a iteral cotrols;

n Cosiers what istictios are ecessary betwee retail a wholesale proucts, a how such istictios shoul

aect how they are superise

HIGH LEvEL GOAL 3


20/34

n Esures that similar istitutios a risks are subject to cosistet regulatio, oersight, a trasparecy

n Has a emphasis o risk mitigatio i aitio to risk assessmet

We will cotiue to carry out our resposibilities uer the Goermet guaratee scheme. This iclues moitorig the

coere istitutios compliace with their obligatios uer the scheme a reportig o compliace by the istitutios with

the scheme to stakeholers i particular the Miister or iace. As part o the implemetatio o the Goermet guaratee

or omestic creit istitutios, we hae alreay implemete a ew moel o superisio. This ioles regular o-site

presece; requet atteace at Compliace, Risk Maagemet, Iteral Auit committee meetig o the istitutio; perioic

atteace at Boar meetigs; more requet reportig a a icrease ocus o solecy, liquiity a goerace. This has

le to a better uerstaig o the risks o the istitutio. We obtai more immeiate iormatio a hae the opportuity

to ifuece behaiour at a earlier stage. We are able to assess the stregths a weakesses o maagemet a boar

perormace which has le to the stregtheig o iteral goerace.

We will proie techical assistace to the Goermet a EU o a rage o EU irecties plae oer the comig years

which will stregthe the acial serices legal ramework, a oce implemete, it will be our task to esure compliace.

These iclue the Solecy II irectie or isurace compaies a UCITS Iv a Alteratie Iestmet u Maagers

irecties or the us iustry. These measures combie with may propose irecties o bakig superisio are just the

start o a sigicat agea o iteratioal regulatory reorm.

The legal ramework or securities markets regulatio is base o a umber o EU irecties, amely: Prospectus, Market

Abuse, Trasparecy a Markets i iacial Istrumets. Major projects are uerway to eelop the systems a obtai the

ecessary sta so that we ca perorm these uctios eectiely. A joit project with the Irish Stock Exchage to uwi theelegatio o prospectus scrutiy tasks is to be uertake. This is i lie with EU requiremets, whereby the couct o this

Prospectus scrutiy role must be reture by the Irish Stock Exchage to us by 3 december 20. A joit steerig committee,

comprise o seior maagemet represetaties rom both the Cetral Bak a Irish Stock Exchage, will oersee the process.

Both orgaisatios are wholly committe to workig o a collaboratie basis to esure the prospectus approal process will

cotiue to operate o a busiess as usual basis both urig a ater the completio o this project. A cosultatie stakeholer

group will esure that releat market participats are iole i this strategically importat project. The successul coclusio

o the project will result i a seamless trasitio o the prospectus scrutiy uctio to the Cetral Bak. The primary objecties

o the prospectus uctio will be to esure that the prospectus scrutiy a approal process is part o a strog a expert

regulatory ramework a also to maitai the highly regare iteratioal reputatio o prospectus scrutiy i Irela.

We will cotiue to work closely with the auitig a accoutig proessios. This iclues proiig assistace i the

eelopmet o auitig a accoutig requiremets/guiace i the area o acial regulatio. I aitio to the statutory

obligatio o exteral auitors to report irectly to us i certai specie circumstaces, we hae iitiate a exercise whereby

they will proie assuraces i relatio to certai regulatory reports mae by acial istitutios to us.

We will cotiue to work closely with creit uios to buil a maitai leels o reseres, liquiity a proisios across

the sector to proie a buer agaist potetial uture challeges. The curret legislatie a regulatory ramework requires

moerisatio to support the goerace, acial souess a uture eelopmet o creit uios. At the request o the

Miister or iace we are uertakig a strategic reiew o the creit uio sector iolig a examiatio o the structure,

operatio, regulatio a legislatio o the sector. Its objectie is to brig orwar specic proposals to stregthe the pruetialsouess o creit uios a aise a iorm a assessmet o the uture strategic irectio o the sector.


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20


stRatEGy aCtIon

sreghe heprudeil upervirrmewrk r fciliiui hrugh heimplemei ew EUreguli

n Prepare or the implemetatio o ew EU irecties or creitistitutios a iestmet rms: CRd II, CRd III, CRd Iv a CRd v

n Itrouce reise large exposure limits or systemically importatcreit istitutios

n Prepare or the implemetatio o a ew EU irectie or isuraceuertakigs: Solecy II

n Prepare or the implemetatio o a ew EU irecties or the usiustry: UCITS Iv a Alteratie Iestmet u Maagers

n deelop superisory system or paymet istitutios

Imprve he dmeicregulr rmewrkpplig fciliiui

n Cosult o corporate goerace requiremets or creit istitutiosa isurace uertakigs

n Cosult o ew coe or relate party leign Cosult o requiremets relatig to remueratio i the acial

serices iustryn Stregthe tess a probity rameworkn Cosier the ee or aitioal requiremets i respect o iteral

goerace a risk maagemet whe iteratioal iitiaties ithese areas are publishe

n Issue valuatio Guielies outliig requiremets or aequateiteral cotrols

n Assess the capital plas o creit istitutios a moitor compliacewith the capital targets that hae bee set or each uer thePruetial Capital Assessmet Reiew

n Assess requiremet or Compulsory Mortgage Iemity Isurace ithe cotext o the Goermets Workig Group o Mortgages

n Research the easibility a esirability o imposig preetermiestaar sectoral cocetratio limits o systemically importat creitistitutios

n Explore creit iormatio eciecies a implicatios a potetialsolutios

n

Uertake a strategic reiew o the creit uio sector

Eure h upervirreurce re llced re gree rik

n Improe aalysis o preomiat risk actors icluig ehaceorwar lookig iicators o bak specic a systemic risk

n deelop a ew risk moel to target the eploymet o superisoryresources

n deelop a egagemet moel or acial istitutios baseo their risk prole a our policy o more itesie superisio,iolig close egagemet with rms a icrease umber o ositeispectios

n Apply the appropriate itesity o superisio appropriate to the riskprole o the acial serice proier


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2

Eure h ew fciliiui eerig hemrke re cmpeelmged d hvepprprie buiemdel

n Authorise ew acial istitutios i accorace with the releatregulatios

n Esure applicatios are authorise i a timely a cosistet maer

Prvide cmpliceice fcil

iiui

n Issue guiace o regulatory issuesn Ifuece the eelopmet o guiace a practice otes by other

regulatory boies

Imprve cmplicehrugh he pplici erceme pwer

n deelop Eorcemet strategy to support compliacen Iestigate allege istaces o uauthorise actiity or o

compliace with regulatory requiremets a take appropriateeorcemet actio, icluig use o superisory irectios aamiistratie sactios

n Complete programme o special iestigatios arisig rom theacial crisis

ai wih he prevei

me luderig dfcig errrim(aML CtF)

n Assist i the preparatio o guiace or iustryn Uertake programme o theme ispectios to icrease probability

o etection Report suspicious trasactios to the Garai a or Reeue

Commissioers as appropriaten Sactio acial istitutios with iaequate risk maagemet a

cotrol mechaisms

Prepre r he uwidig he delegi uci he Irih sckExchge mded b

he EU

n Uwi Market Abuse elegatio by e 202n Uwi Prospectus elegatio by e 20n Uwi Trasparecy elegatio by e 202

Eure h mrkepricip c i ir drpre mer

n Superise moitorig o trasactios by Irish Stock Exchagen Uertake iestigatios o suspicious trasactios uer the Market

Abuse regulatiosn Process applicatios or the approal o prospectusesn Moitor issuers isclosure o iormatio, isclosure o major

shareholigs a otig rights uer the Trasparecy regulatios


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22

Eure h he be iere cumer fcil erice re preced

Busiess couct regulatio has a quite ieret ocus rom saet a souess oersight. Its emphasis is o trasparec,

isclosure a suitabilit. I cases where trasparec requiremets aloe are isuciet, cosumers are protecte b

rules that require air treatmet a high staars o busiess couct b acial serice proiers.

Our objectie is to hae a acial serices iustr where cosumers iterests are protecte. This meas that:

n Cosumers shoul be proie with clear, releat a accurate iormatio, icluig o cost, urig the sales

process

n Cosumers shoul be recommee a prouct/serice appropriate to their ees a suitable or them

n Cosumers shoul receie a high staar o ollow-up serices, e.g., makig a claim, makig a complait, switchig

prouct, ealig with errors, polic reewals, ollow-up aice o iestmets/pesios, etc

The mai tool through which we achiee cosumer protectio is b settig, moitorig a eorcig couct o busiess

rules. We uertake cosumer ocusse ispectios a where issues are iscoere, hae them remeie. Builig

awareess o the staars epecte is also a importat part o our work. A major elemet o the eorcemet regime is

makig the cosequeces o o-compliace clear b publishig iormatio o amiistratie sactios a regulator

actios to oster a compliace culture i acial serice proiers.

The Cosumer Protectio Coe a Miimum Competec Requiremets ow require a ull reiew to esure that both the

priciples a rules that are i place, are aapte as ecessar to take accout o our eperiece i moitorig compliace.

EU irecties are also plae to improe the cosumer protectio ramework. We will also cotiue our programme o

thematic reiews which are a useul tool to istil cosumer staars.

The most pressig area o cosumer protectio cocer is that o mortgage arrears. We recetl amee our Coe i this

area to gie home owers more time ow twele moths to work out a solutio to a arrears problem beore legal actio

ca be take b their mortgage proier. We will be couctig a thematic reiew to eamie how mortgage proiers are

complig with this a other aspects o the Coe. We are cotributig to the recetl orme Goermet workig group

to help eelop other solutios to alleiate the arrears problem.

There is a legal requiremet to hae a deposit Protectio Scheme i place so that i a bak ails, customers ca be pai the

et balace i their accouts withi 20 as. This is a sigicat challege ot ol or baks a creit uios but also or

the Cetral Bak.

HIGH LEvEL GOAL 4


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stRatEGy aCtIon

sreghe he cumerpreci uperirrmer r fciliiui

n Couct a reiew o Cosumer Protectio Coe a MiimumCompetec Requiremets

n Prepare or the implemetatio o the Cosumer creit irectiea propose Package retail iestmet proucts irectie

n acilitate the trasitio o the cosumer iormatio aeucatio role to the natioal Cosumer Agec

Eure h fciliiui c irl

n Uertake a programme o theme ispectios to moitor aeorce compliace with the Cosumer Protectio Coe

n Approe bak chargesn Implemet, moitor a eorce ew coes o mortgage arrears,

licese moeleers, a leig to small a meiumsize eterprises a couct o busiess elemets o PametSerices directie

n Iestigate allege istaces o uauthorise actiit or ocompliace with regulator requiremets a take appropriateeorcemet actio, icluig use o superisor irectios aamiistratie sactios

n Uertake a reiew o prouct eelopmet staars

n Cooperate a share iormatio with iacial Serices aPesios Ombusme a natioal Cosumer Agec

Pride cmplice ice reguled eiie

n Issue guiace o cosumer protectio issues

opere d ereecmpei cheme

n Implemet deposit Guaratee Scheme or baks, builigsocieties a creit uios

n Superise the Iestor Compesatio Compa Lt


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Pride idepede ecmic dice d high quli fcil iic

We uertake ata collectio, statistical aalsis, ecoomic aalsis a research esige to iorm ecoomic polic

makig across a wie rage o areas. The results o our etesie aalsis are coee to goermet, the acial sector,

acaemia a the geeral public through a umber o ieret chaels. Our aice is primaril macroecoomic i ature.

It will hae a icrease ocus o acial sector issues a strategic polic areas such as scal polic, pa eelopmets

a competitieess. We will cotiue to prouce macroecoomic projectios or the Quarterl Bulletis a the Aual

Report.

We will also cotiue to preset techical research results i our Techical Paper series a i special articles i the mai

publicatios. We will also iteract with work i the acial stabilit area, eelopig a ew approach to stress testig, worko housig a creit a proie geeral research support.

While we hae alwas ha ormal high-leel meetigs with polic makers as a chael or commuicatio a echagig

iews, we ite to epa this role a to seek aice a iews o other iorme commetators. I particular, we will

eelop our iteractio with acaemia a other research boies.

We will cotiue to proie iorme commetar a aalsis base o the sigicat a icreasig olume o acial

statistics collecte. These statistics are essetial i ifuecig the ecisio makig process o other polic makers, acial

market participats a the public both at omestic a iteratioal leel. We will also cotribute to the eelopmet o

the Europea Sstem o Cetral Baks (ESCB) statistical ramework, particularl i relatio to ew requiremets or theEuropea Sstemic Risk Boar. Where ecessar we will eelop statistical atabases a other issemiatio methos to

ehace the aailabilit o iormatio require or polic makers a aalsts.

HIGH LEvEL GOAL 5

A compendium of Irish Economic

Statistics is published every yearwith the Annual Report


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stRatEGy aCtIon

Pride li d cmmei he iere ilecmic plic deelpme

n Prouce macroecoomic projectios a publish i QuarterlBulleti

n Proie timel a releat polic aice aime at ifuecigomestic polic makers

n Participate i Eurosstem wie suresn Collaborate with other cetres o ecoomic research i ehacig

research capacit o the Irish ecoom a acial sstem

Expd iicl upu dehce diemii

n Epa the rage o statistics o the omestic acial sector aehace the methos o issemiatio

n Eplore the ee or aitioal statistics i light o the acialcrisis

n Epa electroic reportig to all statistical retursn Improe accessibilit a releace o ata to stakeholersn Participate i joit iitiaties with the Cetral Statistics Oce to

improe statistical coerage a to miimise the reportig buren Cotribute to eelopmet o Europea Sstem o Cetral Baks

statistical rameworkn Participate i iteratioal statistical iitiaties with Bak

o Iteratioal Settlemets, Iteratioal Moetar u,Orgaisatio or Ecoomic Cooperatio a deelopmet etc

Expd ur cmmuici geerl ecmic iue

n Improe commuicatio chaels with stakeholersn Orgaise coereces o strategic research issuesn Cooperate with other research boies a uiersities o

research actiit


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2

Eure efcie fcil erice irrucure he ecm: pme d currec

The Cetral Bak has a importat role i the oersight o pamets sstems a i the eelopmet o pamets sstems

polic, both i the omestic a Europea cotet. Oersight o pamet sstems is aime pricipall at esurig that

pamet a securities settlemet sstems are sae, eectie a eciet a that access to such sstems is ot restricte.

This is a core requiremet or maitaiig acial stabilit a or meetig the busiess ees o the ecoom. This

oersight actiit is ocusse o the omestic retail electroic a paper-base clearig sstems while we also share i

the oersight resposibilit or Europea a iteratioal pamets sstems. This actiit is escribe i etail i the

separatel publishe Oersight Report (200).

TARGET2 (Tras-Europea Automate Real-time Gross Settlemet Epress Traser Sstem), which was itrouce i2008, is the sigle pa-Europea sstem use b each o the atioal pamet sstems to esure a uiorm wholesale

pamet irastructure, thus promotig eciec a itegratio i Europea acial markets. The et major iitiatie

is TARGET2 Securities (T2S) which will harmoise the settlemet o securities traes. T2S will act as a catalst to itegrate

Europea post-traig acial serices, a will oster competitio b proiig harmoise access to settlemet serices

withi the Europea acial market. I orer to aress the sigicat icrease i the rage a compleit o collateral

arisig rom the acial crisis, we will participate i Euro area wie project to eelop a sigle collateral maagemet

sstem (Correspoet Cetral Bakig Moel CCBM2).

The Sigle Europea Pamets Area (SEPA) will create a sigle harmoise, ope, Europea omestic pamets market.

We will pla a strog role i the eelopmet o a natioal Pamets Strateg i orer to promote the take-up o alteratiesto paper-base istrumets a cash, i lie with best iteratioal practice.

Our core uctios i relatio to currec are to mauacture, issue, store a process bak otes a cois, thereb

cotributig to the aailabilit, itegrit, securit a qualit o the euro. We are resposible or the proisio o bakotes

a cois to er strict qualit staars establishe or the Eurosstem. Currec prouctio a issue operatios are ISO

qualit accreite. The aim is to esure that there is a aequate suppl o high qualit bakotes a coi a to ahere

to ESCB securit proceures. durig 200, the Eurosstem Bakote Recclig ramework will be implemete which will

require proessioal cash halers to autheticate bakotes beore the are re-issue ito circulatio. We will moitor the

improemet i the qualit o bakotes as a result o this iitiatie. A oerall assessmet o the eectieess o the cash

ccle a our role i it will also be uertake. dema or coi has alwas bee olatile a we will moitor tres i thisregar to esure our coi prouctio a issue strateg is eciet a meets the ees o the public, the retail sector a

the baks.

HIGH LEvEL GOAL


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stRatEGy aCtIon

Deelp d implemepme d ecuriieeleme em plic

n Participate i the eelopmet o TARGET2-SECURITIES euroarea securities settlemet sstem

n Cotribute to eelopmet o a sigle collateral maagemetsstem (CCBM2) across the euro area

n Moitor implemetatio o Sigle Europea Pamets Arean Ehace pamets sstem or creit uios, eault proceures

or retail clearig a laser ebit carn Aress issues relatig to wholesale pamets such liquiit

buer, pamets capacit buer a elocit o circulation Publish Oersight Report

Pl rg rle i hedeelpme nilPme sreg

n Participate o Steerig Group or natioal PametsImplemetatio Programme Aisor Group

Pride eecie pme decuriie eleme erice

n Operate TARGET2 Euro settlemets sstem

Eure ilbili highquli b e d ci

n Mauacture, issue, store, a process bak otes a coisn Implemet the Eurosstem bak ote recclig rameworkn acilitate itrouctio o ew ES2 bak otesn deelop coi strateg

Fcilie d crdieBuie Ciui plig(BCP) rrgeme r hedmeic fcil mre

n Cooriate BCP to icrease resiliece o Irish acial istitutiosa markets to operatioal risks

n Liaise with other cetral baks cocerig BCP arragemetselsewhere


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Mximie ur peril efciec d c eeciee

A ke goal is to esure that our orgaisatio has the capabilit, aaptabilit a results-ocus ecessar to elier o the si

busiess goals ietie a that operatioal eciec a eectieess is achiee.

We will cotiue to esure that our structures are alige to support the implemetatio o our strategic pla. durig

200, we will implemet a orgaisatioal eelopmet programme a resource a eicate Project Maagemet oce

to assist i the successul elier o a wie rage o projects to be complete oer the comig ears. Our orgaisatio

structure is attache i Appei .

This pla has bee eelope agaist the backgrou o pressures o the Eurosstem a o public istitutios to eliergreater alue or moe i their use o public us. Accorigl, we will aim to operate i a cost eectie maer usig

ehace plaig a bugetig processes a cotrols.

It will be ecessar to sigicatl icrease mapower resources oer the et three ears, particularl i the regulator

areas. I aitio to recruitig aitioal sta with ew skills, eperiece a market-base epertise, we will also eelop

eistig sta through ocuse traiig, secomets, a iteral trasers to other uctios withi the orgaisatio. We

pla to uertake bechmarkig eercises with other regulator boies to esure our leels o superisor resources a

ee comparisos are appropriate a cost eectie.

Creatig a maitaiig a comprehesie perormace maagemet programme that aligs iiiual objecties withthe goals o the orgaisatio will also cotribute to the successul implemetatio o this Pla. We also recogise that goo

work/lie balace optios act as a icetie to attract a retai sta.

We are eelopig a implemetig a orgaisatio wie iormatio maagemet strateg iolig the elier o

Eterprise Cotet Maagemet (ECM) projects a the use o Busiess Itelligece (BI) tools or all critical ata. A

essetial part o successul implemetatio o ECM a BI is re-egieerig the iormatio collectio a aalsis

processes. I aitio, the recommeatios i the Mazars report o the reiew o certai regulator processes will also

be implemete as require. A ehace capabilit i busiess process re-egieerig will be eelope throughout the

orgaisatio, to proie aice a assistace to rot lie epartmets o the esig o ew a improe processes a

sstems.

We are committe to high staars o public accoutabilit, while at the same time assertig our statutor iepeece.

To be successul, we require the co-operatio o a ariet o stakeholers. These relatioships will be maage proactiel

a we are committe i uture to aoptig a cosultatie approach to polic ormulatio a to eplai the ratioale or

sigicat polic ecisios. Withi the costraits o the law, it is essetial that there is a ree fow o iormatio betwee

the orgaisatio a our stakeholers which will be aime at restorig public coece i the orgaisatio.

HIGH LEvEL GOAL


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stRatEGy aCtIon

appl high drd Crpre Gerce

n Cotiue to esure our structures are alige to support theimplemetatio o the Strategic Pla

n Itrouce a balace scorecar approach to measurigorgaisatioal perormace agaist Strategic Pla objecties

n Esure sta operate with itegrit a compl with our iteralcoe o ethics

n Reiew iteral proceures a practicesn Prepare a implemet a orgaisatio eelopmet programmen Establish a project maagemet oce

opimie reur CerlB Ireld e

n Maage iestmet a superauatio u portoliosn Maage our share o the poole portio o the ECBs ow oreig

reseres a act as portolio maager or ECB reseres o othermember state(s)

Impleme hum reurcereg liged ih urrepibiliie

n Uertake a programme o recruitmet to substatiall icreaseour mapower a supplemet our skills

n Implemet a programme o traiig a eelopmet or all sta,

ocusig o eelopig core competeciesn Ehace the perormace maagemet sstem to alig persoal

work plas with busiess objectiesn Improe iteral commuicatios to ai achieemet o strategic

prioritiesn Moitor a reiew our policies to retai sta

Ue echlg impreperi d prcee

n Implemet ke IT eelopmetal projects icluig projectsrelatig to ESCB obligatios, statistics, acial operatios,website, eterprise cotet maagemet, busiess itelligecea olie reportig

n

deelop a implemet a orgaisatio wie iormatiomaagemet strategn Reiew busiess processes to improe eciec a aopt

automate processes where appropriaten Implemet recommeatios o Mazars bechmarkig reportn deelop urther our busiess process re-egieerig capabilit


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Eure eecie reurcemgeme i lie ih beprcice

n

Ehace bugetig a costig sstems to acilitate improemaagemet iormation Prepare a moitor the implemetatio o aual operatioal

programmesn deelop perormace metrics to moitor strategic pla

implemetation Assess easibilit o a sigle le collectio sstem rom acial

serice proiers

Impre rprecd cmmuici ihehlder

n Prepare a implemet a corporate strateg or commuicatiosalige with the high leel goals

n Meet our public accoutabilit resposibilities as set out i

legislation Ehace the cosultatie imesio o polic ormulation Reesig the corporate website as a ke commuicatios tool to

refect the itegrate structure o the orgaisation Commuicate proactiel through the meia

Mge peril ri n Esure operatioal risks are maage, mitigatio measures iplace a moitore actiel

n Improe busiess cotiuit plaign Prepare cotigec pla to esure that we are able to carr out

our time critical market operatios i the eet that our mai

premises is ot aailablen Establish a qualit assurace role to reiew ke processes to

check compliace with staars a iteral cotrolsn Uertake a compliace project to assure seior maagemet

that all statutor resposibilities are beig uertake

Eure ur phicleirme mee urbuie eed

n Proie accommoatio or growth i sta umbersn deelop a log term premises strateg


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3

Governor

DirectorGeneral

HeadofFin

ancialRegulation

Curre

ncy

&

Corpo

rate

Services

Chief

information

Officer

Finance

&

Resources

(Secretary)

Financial

Operations

Econo

mic

Policy

&Financial

Stability

Financial

Institutions

Markets

Policy&Risk

Consumer

Protection

Enforcement

Corpo

rate

Services

Curre

ncy

Issu

e

Curre

ncy

Production

Business

Analysis

Information

Systems

Financial

Control

Human

Resources

General

Secretariat

Internal

Audit

Legal

Financial

Markets

Payments&

Securities

Settlements

Econo

mic

Analysis&

Resea

rch

Financial

Stability

Monetary

Policy&

International

Relations

Statistics

RetailBanks

Supervision

Wholesale

Banks

Supervision

Retail

Insurance

Supervision

Wholesale

Insurance

Supervision

Registrarof

Credit

Unions

Financial

Institutions

&Funds

Authorisation

Investment

Service

Providers

Supervision

Markets

Supervision

Regulatory

Transactions

Prudential

Policy

Governance

&

Accounting

Policy

Risk

Consumer

Protection

Codes

Enforcement

I

Enforcement

II

APPEndIx ORGAnISATIOn CHART


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Central Bank of Ireland

PO Box 559,

Dame Street,

Dublin 2.

Tel: 224 6000

Fax: 671 6561

Email: [email protected] b t lb k i

central bank of ireland strategic plan eng

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