Warning:Unauthorised Investment Firm / Investment Business Firm / Crypto-Asset Service ProviderUnauthorised Firm NameSMH Markets (Clone)Websitehttps://smh-markets.com/Email addresses used• support@smh-markets.com• complaints@smh-markets.com• privacy@smh-markets.com • legal@smh-markets.com • bryan.stone@smh-markets.com Phone number used• +1 6479481664• +1 787 945 2353• +35315314800Authorisation in IrelandSMH Markets is not authorised to provide investment services in Ireland.This unauthorised firm has cloned the details of an authorised firm to pass itself off as legitimate to deceive consumers.There is no connection between the legitimate firm and the unauthorised firm.Notes:Any person wishing to contact the Central Bank with information regarding such firms / persons may telephone (01) 224 5800 or report an unauthorised firm directly to the Central Bank.For more information on how to protect yourself from financial scams, please visit www.centralbank.ie/financialscams The name of the above firm is published under section 53 of the Central Bank (Supervision and Enforcement) Act 2013 

Warning:Unauthorised Investment Firm / Unauthorised Investment Business FirmUnauthorised Firm NameLARL F.S / LARL Financial Services (CLONE)Websitehttps://larlfs.com/Email addresses used• enquiries@larlfs-eu.com• info@larlfs.com• liam.mccarthy@larlfs-eu.comAuthorisation in IrelandLARL F.S / LARL Financial Services (Clone) is not authorised to provide investment services in Ireland.Additional InformationThis firm is cloning the identity of the legitimate Central Bank authorised firm LARL Financial Services Limited (C176004). The clone firm is falsely claiming to be regulated by the Central Bank of Ireland under reference number C176004 in order to add an air of legitimacy to the scam. It should be noted that there is no connection whatsoever between the legitimate Central Bank authorised firm and the scam entity.Notes:Any person wishing to contact the Central Bank with information regarding such firms / persons may telephone (01) 224 5800 or report an unauthorised firm directly to the Central Bank.For more information on how to protect yourself from financial scams, please visit www.centralbank.ie/financialscams The name of the above firm is published under section 53 of the Central Bank (Supervision and Enforcement) Act 2013.

Warning:Unauthorised Investment Firm/ Investment Business Firm/Alternative Investment Firm ManagerUnauthorised Firm NameOristan Ireland Designated Activity Company (CLONE)Website• www.oristanirelanddac.com • https://oristanireland-dac.com/ • https://oristan-ire.com/ • https://oristanportal.com/Email address used• info@oristanirelanddac.com• j.armstrong@oristanirelanddac.com• r.gorman@oristanirelanddac.com• r.gorman@oristan-ireland.com• glenmiller@oristanirelanddac.comPhone number(s) used• +353 1 233 9840 • +353 1 685 5471• +353 1 685 3966Authorisation in IrelandThis clone firm is not authorised to operate as an investment firm or an investment business firm or an alternative investment firm manager in Ireland.Additional InformationThis clone entity, operating the above websites, has cloned the details of a company which is authorised by the Central Bank of Ireland, Oristan Ireland Designated Activity Company.  The details cloned include the name, address and the Central Bank of Ireland registration number of the legitimate authorised entity.    The clone entity is seeking to pass itself off as the legitimate authorised entity in order to deceive consumers. There is no connection between the legitimate authorised entity and the clone entity.  The legitimate authorised entity has no connection whatsoever with the above websites.Notes:Any person wishing to contact the Central Bank with information regarding such firms / persons may telephone (01) 224 5800 or report an unauthorised firm directly to the Central Bank.For more information on how to protect yourself from financial scams, please visit www.centralbank.ie/financialscams The name of the above firm is published under section 53 of the Central Bank (Supervision and Enforcement) Act 2013.

Good afternoon and thank you for inviting me to speak today.Last week, the ECB’s Governing Council decided to raise interest rates by 0.25%. This is the first change since June 2025 – the first increase since 2023 – and brings the main policy rate, the Deposit Facility Rate, to 2.25%.Our decision is a response to inflation pressures from higher oil prices and other supply disruptions arising from the war in the Middle East. My colleagues and I on the Governing Council were unanimous in making the decision; all of us are committed to a monetary policy that delivers our 2% inflation target over the medium term.In the first part of my speech, I set out the context for last week’s decision, outlining the economic outlook for the euro area. The experience of inflation in 2022 showed that net energy importers like Europe — and Ireland in particular, where 80% of our energy is imported, compared to an EU average of 60% — are very exposed to energy price shocks. As our latest Financial Stability Review put it, if the conflict in the Middle East is unresolved, rising inflation and slower growth will be acutely felt by households and businesses.In the second part of my remarks I focus more closely on Ireland, covering the implications of the energy price shock for the Irish economy and  my take on the extremely volatile GDP data we saw recently.  On Thursday this week, we will publish our second Quarterly Bulletin of the year which will set our views on the outlook for the Irish economy more fully.The outlook for the euro area economyThe conflict in the Middle East has delivered a significant supply-side shock to the global economy. Oil prices rose sharply at the onset of the war and remain exceptionally volatile, driven in-part by reporting around how an agreement to end the war might work in practice. The price of energy-intensive products, particularly where production is concentrated in the Gulf region such as fertiliser and helium have also jumped. More generally, rising petrochemical prices, a key factor in the production of many everyday items we consume from food packaging to cosmetics and clothing, are contributing to upward price pressures across the supply chain. The direct effects of the energy shock have already shown up in consumer prices, while the indirect effects are beginning to emerge. The flash estimate for euro area headline inflation in May was 3.2%, up from 3% in April and 1.9% in February. Energy inflation alone was close to 11% in May.Global supply chain pressures intensified in March and April, pointing to further upward pressure on goods prices in the months ahead. Other upstream indicators reinforce this picture: surveys show rising input prices and lengthening supplier delivery times and firms are telling us they expect selling prices to increase in the next three months. All of this shows that the initial energy shock is spreading and, notably, these patterns are broad-based, across all sectors, that is, retail, services, industry, and construction.These are not comfortable numbers, and they are moving in the wrong direction. The question is whether this is a repeat of the 2022 experience that followed Russia’s invasion of Ukraine. The two shocks rhyme – in that they are both geopolitical events that push up energy prices – but it is also that case that starting economic backdrop today is quite different, and this could matter for how the initial shock transmits to the broader economy. In 2022, the energy shock arrived into an economy recovering strongly from the pandemic, with demand momentum and labour markets exceptionally tight. The inflation that followed was a combination of supply disruption and demand pressure. The policy response was a rapid sequence of rate increases calibrated to cool demand as well as anchor expectations.Today, demand is well below the levels we experienced coming out of the pandemic.  And since the start of the war, euro area GDP growth has been revised down.  Consumer confidence has fallen and private investment is hesitant in the face of ongoing uncertainty. The latest shock also arrives at a challenging time for European manufacturers, who are impacted by China’s transition to a producer and exporter of complex, high-tech goods that directly compete with Europe’s core industrial sectors. This relatively weaker economic matters, because we know from previous episodes the pass-through of oil shocks to consumer prices tends to be weaker in low-inflation or weaker demand environments. This can happen because, in the face of weaker demand, firms find it harder to pass-on extra costs and workers have weaker bargaining power when it comes to wage demands.The timing and scale of the impact on core consumer goods and services will also depend on the persistence and scale of the shock itself, which remains highly uncertain, notwithstanding this weekend’s news. In addition, how wages and profit margins respond to the initial inflation shock — so-called ‘second-round effects’ — could contribute to stickier services inflation.While conscious of the economic backdrop, I am also wary of taking too much comfort from a ‘this time is different’ narrative, for a few reasons. As I already indicated, the incoming hard and soft data shows clear upward price pressures. Another concern I have is the potential for longer-term energy supply disruption relating to the destruction of infrastructure, on which we have little clarity at this stage. And of course, a channel I pay close attention to is what is happening to inflation expectations. We track expectations because the prices that businesses and consumers expect in the future can shape price-setting and wage demands today.ECB research shows that after the outbreak of the latest Middle East conflict in February, euro area consumers revised their short-term inflation expectations upward sharply while simultaneously marking down their growth expectations. At the median, consumers’ twelve-month ahead expected inflation rose from just over 2.5 to 4 per cent in March and has remained there since. Short-term inflation expectations tend to react quickly to spikes in energy prices, and if the initial shock fades, these expectations can revert.  This is why we also pay attention to medium-term expectations, which have been more stable of late, across consumers, firms, and financial markets. For example, data from inflation swaps that allows us to gauge average inflation over the coming five years showed little movement since the onset of the war, currently sitting just above 2.1%.Despite this, we also need to account for the fact that households are encountering this new shock already carrying the memory of the post-pandemic inflation surge. That accumulated experience has made them more sensitive to price developments: even as inflation had returned close to our 2% target last year, close to 41% of consumers surveyed in the ECB Consumer Expectations Survey said they were still paying close attention to price changes. When the conflict escalated at the end of February, that figure rose again to 50%. The message is clear: consumers have not forgotten, and they are watching closely.Let me be clear about what raising rates in this environment does and does not mean.It does not automatically mean we are embarking on a new extended tightening cycle equivalent to 2022 and 2023. The context is different, the starting point is different, and the calibration should be different. Yet we know from the past, as well as from the incoming data, that supply shocks cannot simply be accommodated when they risk being persistent and when expectations are as sensitive as the data suggest they currently are. It does mean that the path ahead remains genuinely uncertain and, for policy, data-dependent. The latest staff projections have inflation in the baseline averaging 3% in 2026 but peaking in the second half of the year at 3.4%.  For 2027 and 2028 it averages 2.3 and 2.0%, respectively. It is worth comparing these with the projections from June 2022, where the communication from the Governing Council at the time was that this was the start of a hiking cycle: inflation was projected to average 6.8% in 2022, 3.5% in 2023, and 2.1% in 2024.  Reflecting uncertainty around energy prices, the June 2026 projections also consider the impact of milder, adverse, and severe energy scenarios on inflation.  In these scenarios, inflation ranges from 2.9 to 4.0% in 2026, 1.8 to 5.0% in 2027, and 1.8 to 3.0% in 2028. Prior to the weekend’s announcements, my view was that we were tracking closer to a scenario where oil prices only come down slowly through 2027 and 2028 but remain above pre-war levels. The ‘milder’ scenario had a faster decline through the second half of 2026, returning to pre-war levels by mid-2027. While much remains unclear, I welcome news of the proposed memorandum of understanding to end the war, in particular for the people and families in the region directly impacted by the conflict. But let me be clear: an end to the conflict does not necessarily mean an immediate end to the shock. The balance of risk in staff projections – that is considering the mild-to-severe scenarios I outlined – showed that a rate increase in June was the right approach to bring inflation back to our 2% target over the medium term. It remains to be seen how quickly supply chains normalise and energy prices adjust. The direct price pressures might not fade so quickly if the infrastructure damage from the war means production only recovers with a lag. Then there is the question of shipping through the Strait of Hormuz, on which there remains little clarity. So, despite the recent and relatively positive news, we really need clarity around energy supply. And until then, I continue to monitor the pass-through of the shock, focusing on the indirect and second-round effects I have described. What might this latest shock mean for Ireland?For Ireland, Modified Domestic Demand, our preferred measure of underlying activity, is expected to slow to a more moderate pace compared to more recent years. Our March projections incorporated the initial effects of the Middle East war on international energy prices. This resulted in inflation being revised significantly higher, prompting knock-on downward revisions to households’ real disposable income and consumption. Working in the opposite direction, the outlook for modified investment has improved on the strength of double digit, broad-based growth in 2025 and a continued robust performance in the first quarter of 2026. Compared to our projections from March, and up until the recent announcement, we had been moving closer to the oil price assumptions embedded in the ‘adverse’ scenario set out in those projections. That is, where oil prices remain about $90/barrel through 2026, and only come down very gradually to around $70/barrel through 2027 and 2028. In this scenario, inflation was closer to 3.6% on average in 2026 as opposed to the baseline projection of 2.9% (2.3%) from March (December). Growth was also marginally weaker in a more adverse energy scenario, averaging 2.7% in 2026. Later this week, we will publishing our updated projections and fuller assessment of the outlook for the Irish economy.Ireland’s Q1 GDP in the spotlightFinally, I want to highlight recent developments in the Irish economic data which have been the subject of much discussion among economists and others.Ireland’s Q1 2026 GDP figures showed a striking 12.1 per cent quarterly decline, which was significant enough to drag overall euro area GDP growth into negative territory for the quarter. But as is often the case with Irish data, the headline figure reflects the outsized role of foreign-owned multinationals in the Irish accounts rather than a genuine deterioration in domestic economic conditions. Foreign multinationals account for around half of measured Irish GDP, and trade equates to 230 per cent of GDP, reflecting Ireland’s role as a globalised production and export hub, particularly in pharmaceuticals and ICT.The Q1 decline had two distinct drivers. First, a base effect: an exceptional surge in exports of polypeptide hormones (a high-value input into diabetes and weight-loss medicines) during Q1 2025 made for a difficult comparison this year, an effect that had already been anticipated. Second, and more of a surprise, was a sharp fall in net trade related to “merchanting” and contract manufacturing (activity undertaken abroad on behalf of Irish-resident companies as part of their global value chains). This is the main driver of the decline.Importantly, Modified Domestic Demand, the measure that strips out these globalised factors and captures consumer spending, investment, and government spending within Ireland, actually rose by 0.6 per cent over the same quarter. This divergence underlines why modified measures, rather than headline GDP, are the better guide to underlying conditions facing Irish households and businesses, and why this volatility, while dramatic, does not, in my view, signal a material change in the fundamentals relevant to the broader economic outlook.The financial sectorMy speech this evening focuses on economic developments. But, before I conclude, allow me to say a word about our approach to regulating the financial sector.  The volatile and uncertain environment I have just described has direct implications for how we think about regulation and supervision.Our Regulatory and Supervisory Outlook report set out our priorities for the year ahead, shaped by three themes: building resilience to geopolitical risk and macro-financial uncertainty,  protecting consumers and investors in a rapidly changing world, and responding to technology-driven transformation across the financial sector. These are, in many respects, the same forces I have been describing throughout this speech, viewed through a different lens.Alongside this, we continue to deliver on our roadmap for regulating and supervising well, making our framework more effective, more proportionate, and easier to navigate, without compromising resilience.  We will shortly consult on a refreshed framework for how we assess the impact of our regulatory decisions, to ensure that approach is evidence-based and transparent. In a world that is becoming less predictable, firms and consumers need a regulatory environment that is a source of stability, clear, and proportionate and consistent in its approach to managing evolving risks.ConclusionLet me close by connecting the threads of what I have covered this evening.Europe is navigating a serious near-term shock. The energy price surge driven by the Middle East conflict has pushed near-term inflation higher, is softening growth and putting real pressure on households and businesses. This is acutely so in Ireland, given our energy import dependency. Last week’s rate rise was necessary to prevent temporary energy-driven inflation from becoming embedded in wage and price expectations, reflecting the ECB's primary mandate to maintain price stability across the eurozone.This latest shock is a reminder of just how exposed a small open economy such as Ireland is to these sorts of increasingly frequent geoeconomic fragmentation shocks. The volatility I highlight, in energy prices and in our own national accounts, underlines why building economic resilience domestically remains so important, and increasingly urgent.Earlier this year, in my letter to the Tánaiste, I set out a number of domestic priorities for exactly this reason: growing the supply-side capacity of our economy (including energy infrastructure), strengthening the indigenous business sector alongside FDI, building fiscal buffers for the investment still needed, and enabling greater household participation in financial markets. None of those priorities were written with these particular events in mind, but they illustrate precisely why they matter. An economy with deeper buffers, energy independence, and more diversified sources of growth is better placed to absorb shocks, whatever their origin.I will return to these themes, and to the outlook for the public finances specifically, in my annual pre-budget letter to the Minister.  For now, the lesson from recent weeks is a familiar one, but worth repeating: resilience is not something built once and then set aside. It needs to be tended to and reinforced, particularly in a world where the shocks keep coming, and where their origin is increasingly hard to predict.

In his latest blog, Governor Gabriel Makhlouf explains the ECB Governing Council decision to raise interest rates by 0.25 per cent. This first change since June 2025 brings the Deposit Facility Rate to 2.25 per cent. He supported the decision and, along with his colleagues on the Governing Council, is committed to delivering our 2 per cent inflation target over the medium term.

IntroductionGood morning, I am delighted to be here and many thanks to Patricia at FSI for the invitation.1You have a busy agenda today, discussing some of the key issues currently facing the financial sector and financial regulators.As the title of this conference suggests, we are living through a time of fragmentation; and, as I said earlier this week, this is coming alongside a period of rapid technological transformation.2While they say that there is nothing permanent except change3 I think it is fair to say that the scale and pace of change underway is potentially unprecedented – and comes on top of an already complex and interconnected risk landscape.4 Managing, navigating and responding to this is the clear and present challenge which we are all facing.It presents both risks and opportunities for global financial services firms, and for global financial centres, and it is against this backdrop I would like to set out some perspectives this morning.Firstly, on financial regulation amidst financial fragmentation – both the approach of Central Bank of Ireland as well as what we expect of firms.And secondly, our commitment to Regulating and Supervising well – which includes risk-based, outcome-focused supervision, robust and efficient gatekeeping, and delivering on simplification, all of which I would like to update you on today.Combined – a strong and well-run sector, operating in a robust and well-regulated environment – these represent to me important foundations for financial services firms as you look to respond to an increasingly complex and challenging world in 2026 and beyond.Global responsibilitiesSo, what does it mean to me, as Deputy Governor, Financial Regulation at the Central Bank of Ireland, and my teams to regulate and supervise a significant international financial centre – in particular in the context of international fragmentation.We have spoken before of the sectors’ rapid growth, and how it has become bigger, more complex, more digital and more international.5This has been the defining feature of the changing landscape of financial services in Ireland over the last decade, and as the people in this room represent, Ireland is home to significant parts of the international banking, insurance and asset management sectors – while being an increasingly important EU hub for fintech and payments.As I said early this week, global significance comes with global responsibilities. And our international responsibilities are something we take seriously at the Central Bank, indeed something we embrace – as we work to contribute our part to the global public good that is global financial stability. For me this involves a number of things, but in particular:A continued commitment to international engagement, standards, cooperation and scrutiny; and, crucially,Ensuring the sector is resilient and well run, so that consumers and the financial system in Ireland, Europe and beyond are well served and well protected by Irish based firms.On the first point, while the narrative and focus is very much on fragmentation, it would be remiss not to recognise that the global economy and financial system remains highly interconnected – and indeed I believe is likely to remain so. International trade, including in financial services, and the inter-connectivity of our economies and financial sectors continues – and even if globalisation may be in retreat, this is the primary context in which we continue to operate.  For our part, we remain fully committed to the global regulatory framework and global supervisory cooperation.We actively support the work of the international standard setting bodies, and the implementation of global standards in Europe. And we work  closely with supervisory colleagues in Europe and around the world.As you all know, as regulators we think through the cycle.While this applies to our regulatory frameworks, I have always firmly believed in also building regulatory relationships that operate through that cycle – part of why we put such an importance on bilateral engagement, as well as our commitment and contribution to the wide range of EU and International fora we are part of.Speaking to you, I would say that firms should also be thinking through the regulatory and political cycle.And rather than championing, and capitalising, on divergence, they should continue to advocate for, and indeed practice, convergence. Which means for me taking a longer-term view, and applying the best standards internationally, rather than the lowest standards locally.This is something I know first-hand many of the international firms here do – knowing the value of high standards and resilience.And indeed I have seen many upstream benefits from international subsidiaries, in terms of best practices from local entities influencing better outcomes at group level.Opportunities and responsibilitiesThis brings me to my second point – namely our focus on ensuring our sector is resilient and well run, and what we expect of you in this world of fragmentation, volatility and rapid change. Speaking to this audience, let me focus my remarks on how we think about – and what we expect from – those firms that are part of wider international groups.The first thing to say is we are clear on the commercial and practical implications of being part of these groups – in terms of competing for resources alongside other entities across the globe, the leveraging of functions, and the down-streaming of group decisions. But secondly, while this is important context that we understand, we believe that it is in the best interest of everyone that subsidiaries based in Ireland are part of a well-regulated, stable jurisdiction – and subject to the high standards and risk-based supervision that sets them up sustainably for success. This includes being resilient, financially and operationally, but also in terms of governance and risk management – ensuring the local entity is substantive, and sufficiently independent.Thinking in particular of the current risk landscape, Irish entities part of global groups, have distinct opportunities and responsibilities. In terms of opportunities, having access within your groups to global networks and intelligence, global infrastructure and data, as well as exposure to global best practices in risk management, can provide real benefits. In the face of a rapidly changing external environment, including rapid technological change, this can be something that you can harness to the benefit of your consumers and the wider economy.But alongside these opportunities you have clear responsibilities, to ensure that your Irish and European franchise is substantive and well governed.This means that leveraging of group resources is not done to the extent to which it compromises the independence of the local board, or creates conflicts of interest that are not adequately managed, or leaves boards unable to fulfil their oversight function, their regulatory obligations or, simply, their duty to their customers. This has always been the firm principle under which we regulate our large internationally oriented financial sector – and one that I reinforce today.6 And while as I said these benefits can be a distinct advantage navigating the current external risk environment, amidst global fragmentation and rapid innovation, such local responsibilities become all the more important.This is something my teams and  I have discussed with many of you – and I know of the ongoing commitment of our sector to robust boards demonstrating both autonomy and responsibility, understanding and expertise.Regulating and Supervising well – minding the gate…Turning to our broader regulatory framework, you have heard me speak before about Regulating and Supervising well – which for me means robustly, effectively and efficiently.  As you know our revised integrated supervisory approach,  introduced in January 2025, builds on the strong foundations of our risk-based approach to supervision, incorporates our European and international supervisory responsibilities, and the domestic and European regulatory framework in which we operate.Through risk-based and outcomes focused supervision, robust and efficient gatekeeping, and clear and predictable regulation, we deliver the high standards and stable environment which underpins a strong financial services sector.In particular today, I would like to cover two aspects of this: our approach to authorisations and gatekeeping and how we are delivering simplification.Firstly, gatekeeping – which is a key part of the regulatory and supervisory framework, and indeed a large part of our work. Over the last 10 years we have authorised or approved:3 Banks, 32 Payment Institutions and 30 E-Money Institutions;Over 9,000 Funds7;60 (re)insurance firms, and 11 Solvency II special purpose vehicles;57 MIFID Investment Firms and around 1,900 retail intermediaries8; and around 9,000 debt prospectuses and nearly 30,000 people in key roles in financial services as part of the Fitness and Probity Regime.And today we are publishing our annual Authorisation and Gatekeeping report9, which sets out expectations and metrics on how we are delivering on this role, and demonstrates that the pipeline is still strong, and that it is expected to continue to be so.But why is gatekeeping important?Well, gatekeeping  is all about ensuring firms, individuals and products meet the required standards, in particular those responsible for the public’s money – and in this way it plays a fundamental role in contributing to our safeguarding outcomes, namely: financial stability, the safety and soundness of firms, the protection of consumer and investor interests, and the integrity of the system.Given the volume and importance of this role, our approach to authorisations is:Risk-based and is framed in the context of legislative requirements, guidelines and best practice. Proportionate and reflects the nature, scale and complexity of firms’ activities. Outcomes focused, in that it is not about checking boxes but about ensuring we deliver the right outcome, which is a firm set up to be well run, sustainable and to serve its consumers well. Robust – considering an authorisation granted by the Central Bank is an entry point for providing services into the Irish and European financial markets and therefore has to mean something in terms of high standards. We also work hard on supervisory convergence across Europe to ensure common high standards for our single market.But recognising the importance of innovation, new entrants, and the proper and orderly functioning of our financial sector, in addition to ensuring our process is robust, in recent years we have also focused our efforts on ensuring it is efficient. We know that the speed and predictability of regulatory processes matter to firms making investment decisions; but at the same time we also know the importance of the high standards that should be associated with regulatory approval from Central Bank of Ireland.As such, this does not mean we prioritise speed over rigour. But it does mean we have sought to enhance our gatekeeping process, to be more clear, more transparent, more efficient and more predictable.We have done this out of a desire to continuously improve. But also in the face of feedback that our clarity and responsiveness to incoming applications could be improved, as well as the review of our Fitness and Probity approval process in 2024 – which has helped further strengthen our approach.10We have listened and acted on that feedback, have learned the lessons where our processes may not have always been up to the required standards and have fully implemented the recommendations from that review. The positive response from industry and other stakeholders underlines the progress we believe we have made here.To enhance transparency, today we are publishing our second report on implementing the F&P review recommendations.11 All 12 recommendations are now fully implemented and embedded. Highlights include:Efficiency: 97% of F&P application assessments are completed within 90 days – with average approval time of 50 calendar days.Clarity – we have consolidated our guidance into streamlined and user-friendly materials;Governance – we have established a dedicated F&P unit, as well as a Gatekeeping Decisions Committee, which I chair; andEngagement – we have actively engaged with industry stakeholders, including through workshops, increasing transparency and building trust.While satisfied with our progress – both on this work and our broader approach to authorisations – we know we are not perfect, and that there is always room to improve.But we also know it is not about being perfect – for fear it becomes the enemy of the good. Rather it is about being a mature regulator committed to learning and improving. It is about responding to feedback, changes in the framework and legal clarifications. It is about being more effective and efficient, as well as addressing any issues identified with our processes or communications – all of which is designed to support good supervisory judgement, and good outcomes.As we continue to improve in our gatekeeping work, I would highlight three areas for the future:First, as noted in our simplification roadmap, following the success of our F&P Unit we are centralising our broader gatekeeping functions to make it more effective, while bringing greater, clarity, consistency and efficiency to this work.Secondly, we are investing in and improving our technology, including through automation and AI – which will provide efficiencies, transparency and consistency in the internal and external experience of the authorisation process for all sectors and products.And thirdly, we are firmly committed to continuing to deepen our understanding of innovation in the financial sector, which includes our own internal expertise, our innovation engagement – through the hub and the sandbox –  but crucially also our engagement at the gate, where we are increasingly seeing innovative business models and applications from both new and incumbent providers.All of this is aligned with our commitment to being more forward looking, more open and engaged, and to regulating and supervising well.  And sets us up well to continue to deliver on our important gatekeeping role into the future, helping to maintain the stability of the sector while ensuring the financial system is operating the best interests of consumers and the wider economy.…and delivering a more effective and efficient frameworkFinally, let me touch on a topic we are very much engaged with in the Central Bank, namely the simplification agenda.In my first speech as Deputy Governor a little over a year ago, I set out my thinking on simplification and how my teams and I would approach this issue.12I said we would proactively look for areas to simplify; and we would engage with stakeholders on their views.I said we would enhance our approach to weighing the costs and benefits of regulatory interventions; and that we would be effective and efficient in our regulation and supervision.And I said that while engaging on these issues, we would remember and remind others of the lessons from past – and call out instances where we believe simplification was sliding into deregulation.Over the last year I believe we have done that, though of course with more to do. We have engaged openly with our stakeholders, and have looked at our own frameworks. We have continued to embed our new supervisory approach, which is more integrated, more risk based and more outcomes focused, building on the strong foundations of our previous model.We have broadened and enhanced our evidence-based policy making, further embedding this in our regulatory approach.And in December we published a comprehensive multi-year roadmap of simplification initiatives across regulation, supervision, gatekeeping and reporting – of which I would like to give you an update today.13I am pleased to say we are on track on our commitments.Some examples include: Setting out in more detail our annual supervisory plans – which were included in our Regulatory and Supervisory Outlook this year, and I was glad to hear this was useful and well received.Completing a review of our Cross-Industry Guidance on Outsourcing, which was specifically called out in our engagement with stakeholders. Following this review we have decided to remove the current guidance and replace it, removing any duplication while still assisting firms through non-mandatory good practices. We will be engaging with the sector on this new guidance later this year.In terms of our review of more than 50 domestic insurance artefacts – we have prioritised areas affected by the Solvency II reforms, and will be engaging with the sector on proposed changes over the rest of this year, including at a half-day event next week.On data and reporting, we are centralising our approach to data in the Bank. We have streamlined new data requests, and are engaging in a comprehensive review of data collections. We have already identified early candidate reports for retirement/consolidation – and will progress this in the second half of this year.And finally, we have developed a new regulatory impact assessment framework – which we will publish and consult on in the coming weeks. This work further embeds and brings greater consistency to how we do policy in the Central Bank, as well as how we conduct and publish regulatory impact assessments for those areas of policy where we are exercising meaningful discretion.This will bring greater clarity and transparency to our approach, will enhance and support good evidence-based policy making, as well as deepening the consultation process through a better and clearer articulation of the trade-offs and outcomes we want to achieve.ConclusionLet me conclude.We are undergoing a period of fragmentation and rapid change, which presents risks and opportunities for the financial sector.For our part, we are firmly committed to global cooperation and standards – and through regulation and supervision playing our role in a well-functioning financial sector operating in the best interests of consumers and the wider economy in Ireland, Europe and beyond. For your part, while internationally oriented you must do so from strong domestic foundations. This includes your ongoing commitment to resilient and well-run firms, leveraging the best of your international opportunities while firmly delivering on your local responsibilities. For we must remember our financial sector is built on the foundations of robust supervision, high standards, strong global connections, and innovation done well. In uncertain and challenging times these foundations are more important, not less. And so we should focus on reinforcing them – thinking through the cycle, and recognising that resilience is a strategic advantage, rather than a burden to be undone.As the old saying goes: When the roots are deep, there is no reason to fear the wind.14 Wise words to heed in times of challenge and change  – as we look to, and indeed weather, the future to come.Thank you! [1] Many thanks to Cian O’Laoide for his help preparing these remarks.[2] McMunn Navigating and responding to change – resilience, innovation and regulation in the Funds Sector June 2026[3] Attributed to Heraclitus[4] Regulatory and Supervisory Outlook 2026 and Financial Stability Review I 2026[5] Remarks by Mary Elizabeth McMunn at bpfi - 7 May 2026[6] Remarks by Mary-Elizabeth McMunn Director of Credit Institutions Supervision at Federation of International Banks in Ireland annual conference November 2022[7] QIAIF, RIAIF, UCITS and ELTIF fund types[8] Including debt management firms[9] Authorisations and Gatekeeping report[10] Fitness and Probity Review July 2024[11] Fitness and Probity Review – report on implementation of recommendations 2026[12] McMunn Shocks and shifts – regulation and supervision in a changing world April 2025[13] Regulating & Supervising well – a more effective and efficient framework December 2025[14] African proverb

My thanks to the Tánaiste and his Department for the invitation to be here today. I am delighted to take part in this National Financial Literacy Strategy Stakeholder Forum. It is an important event as part of a necessary collaborative approach across public and private stakeholders in delivering Ireland’s National Financial Literacy Strategy – a strategy in which Central Bank of Ireland is proud to participate. As we are here in the oldest continuously operating maternity hospital in the world, it seems fitting to start by noting the parallels between financial literacy and health literacy. Research has shown that lower levels of health literacy1 result in higher mortality rates.2 If you are better informed about your health, you typically have more effective consultations with health care providers, are better informed about medications or treatments, and as a result have improved health outcomes. The same principle applies to financial literacy. The more financially literate you are, the more resilient you become to economic shocks and the better equipped you are to secure your financial future.As Deputy Governor of Consumer and Investor Protection at Central Bank of Ireland, I am responsible for leading the strategic development and execution of the Central Bank’s consumer and investor protection mandate across all sectors within the Irish financial system. I am here today to talk to you about the work the Central Bank does to advance the objectives of the Financial Literacy Strategy through that Consumer Protection mandate.Financial Literacy and Awareness as a principle in financial consumer protectionLet’s start with the global standard. Principle 4 of the G20/OECD High Level Principles on Financial Consumer Protection requires all stakeholders to promote financial literacy and develop mechanisms that equip consumers to understand risks, make informed choices, and support their financial wellbeing.The Central Bank supports Ireland’s achievement of this principle by working to ensure the firms we regulate act in a manner that helps the achievement of these objectives. Our recently modernised Consumer Protection Code is central to this effort. The Consumer Protection Code as an enabler of financial literacy The Code creates an environment that helps support the promotion of financial literacy. Here are some examples: The Code requires firms to ensure that information is provided in a way that the material features of the product or service can reasonably be understood and that all customer information is clear, accurate, up to date, written in plain and accessible language, and avoids unnecessary technical terms. Firms are now specifically required by the Code to ensure digital services are designed to be easy to use and navigate, that the technology is tested, and that it produces consistent and objective outcomes.Mortgage Switching is made easier under the new Code and when buying on credit online (like "buy now, pay later"), firms must give consumers enough time to think about whether this type of credit is right for them.The Code contains new requirements for firms to counter the risk of frauds and scams, keeping consumers informed and supporting them if they fall victim.Through measures such as these - and there are many more in the Code - we aim to create an environment that supports the better consumer outcomes.  And we will work to ensure that these requirements are properly implemented by the firms we regulate, who have a critical role to play in promoting financial literacy. I have noted on previous occasions, for example, how industry could make their contribution to the important policy objective of simplification by making their product offerings and processes simpler for the consumers who use them.Making consumers aware of the risks and their rightsThe Central Bank also has a role to play to inform consumers of the risk landscape that we see in a way that is meaningful for those consumers when it comes to making key financial decisions. We also want to ensure consumers understand the protections available to them when using financial services and products. We do this in a number of ways including through our Consumer Hub, where we continue to provide information to support consumers, through the publication of plain language explainers and videos to inform and educate. This includes warnings to consumers about potential risks such as our recent consumer information campaigns dealing with frauds and scams, crypto, and Buy Now Pay Later. Advancing Financial wellbeing through Consumer ProtectionThe financial decisions consumers make – at different points in their lives – can have a profound impact on their long-term financial wellbeing, and as a result, their overall quality of life. We know that consumers who are financially literate are better placed to make good financial decisions and to look after their interests to safeguard their financial wellbeing.A strong, effectively supervised, consumer protection framework supports financial wellbeing by ensuring that consumers are informed effectively, and that they have access to quality financial products and services that support them in managing their finances.Through a comprehensive programme of work in 2026 and beyond, we will continue to ensure that firms are placing consumers at the centre of their decision-making and operations. By holding firms to account on how they treat their customers and by monitoring their compliance with our modernised consumer protection code, we aim to create an environment where consumers are better protected, better informed, and better equipped to make sound financial decisions. This is how, working with the stakeholders here today, we advance financial literacy and financial wellbeing at scale.Concluding remarks The G20/OECD principles I referred to speak about “financial wellbeing”. Financial decisions are often complex and difficult. Just like the decisions we make about our health. And I wish we could say we are as attentive to our financial wellbeing as we are to our health more generally, accessing the professional help we need and getting better outcomes. This is why building financial literacy and creating supportive systems is so essential.With better financial literacy we will have better financial wellbeing outcomes. I hope that years from now, perhaps in this very venue, future generations will remark on the journey to bring those better financial wellbeing outcomes into being. [1] Health Literacy [2] Association between low functional health literacy and mortality in older adults: longitudinal cohort study

Deputy Governor McMunn's speech to IOB Funds and Asset Management Forum on 8 June 2026.

Central Bank of Ireland has today (Friday 5 June 2026) published its Annual Report and Annual Performance Statement for 2025.Speaking on publication of the report, Governor Gabriel Makhlouf said: “2025 was a year of significant uncertainty and adjustment. “Inflation across advanced economies continued to moderate from the highs experienced in previous years. In the euro area, we kept interest rates at levels necessary to ensure that inflation returns sustainably to our 2% target even as geopolitical tensions, technological change and the climate transition continued to reshape the landscape of our economies and financial systems. The uncertainty continues even now, and my colleagues and I will continue to act in line with our mandate, remaining data-dependent.“The Irish economy demonstrated resilience, supported by strong employment and investment. We continued to face the challenges of infrastructure constraints and the uncertain external environment which so affects us as a small open economy with a large, internationally-connected financial sector. We must continue to strengthen Ireland’s resilience to global shocks – while 2025’s disinflationary process was driven primarily by the continued unwinding of energy price shocks, the supply shock from the war in Iran is already showing up in higher energy commodity prices, passing quickly into consumer and business energy costs.” Reflecting on the Central Bank’s achievements over the last year, Governor Makhlouf said: “During 2025, the modernised Consumer Protection Code came into effect, following a comprehensive review of the existing framework to stay abreast of the way financial services are provided in a digital world. The revisions enhance the areas of informing effectively, protecting consumers in vulnerable circumstances, mortgage switching, insurance auto-renewals, frauds and scams, and the provision of unregulated products and services by regulated firms.   “We continued to develop our Innovation Sandbox programme with a call-out for projects on the theme of innovation in payments, strengthening engagement with innovators in this area and enriching our insight into emerging technologies and business models in the Irish financial system. The 2025 theme was combatting financial crime and we brought together seven projects across innovation areas such as information sharing, identity verification and fraud prevention. “In 2025, we implemented our new supervisory approach aimed at delivering on four critical and overarching safeguarding outcomes: the protection of consumer and investor interests; the integrity of the financial system; the safety and soundness of firms; and financial stability. We continue to signal our priorities and methodologies through the annual Regulatory & Supervisory Outlook Report, and in December, we published our ‘Regulating & Supervising well – a more effective and efficient framework’ report which outlines our approach and experience to date in reducing complexity and improving clarity while maintaining resilience and important protections in the system.“At an organisational level, our new framework created multi-disciplinary teams working together within and across sectors to deliver our supervisory priorities in a more effective way.“We progressed implementation of new EU regulatory regimes such as the Markets in Crypto-Assets Regulation, the Digital Operational Resilience Act, and the EU AI Act, applying its responsible AI governance model to the deployment of our own internal AI tool, BankChat, and AI-enhanced business intelligence.“At the beginning of 2025, we set up a dedicated team to investigate and prosecute offences under financial services legislation. We became a Trusted Flagger and began our efforts to have illegal online content removed by certain large technology firms and ran an advertising campaign to raise awareness about scams and empower people to avoid them.“We also issued two commemorative coins, one to mark Daniel O’Connell’s 250th birthday, and the other the achievements of George Bernard Shaw on the 100-year anniversary of his becoming a Nobel laureate.“Reflecting our commitment to the continued availability of cash, we commenced our responsibilities under the Finance (Provision of Access to Cash Infrastructure) Act 2025, processing the registrations of cash-in-transit companies and ATM Deployers operating in the State, designating entities responsible for compliance with the Act, and launching two public consultations (one on Local Deficiency and another on Requirements for ATM Operators). “We responded to the Government’s 2025 insurance reform action plan, delivering on greater market transparency to deliver a fairer and more affordable insurance market with faster releases from the National Claims Information Database.“Our multifaceted and demanding work is only made possible by the people who work here, whose dedication and professionalism are commendable in rising to the challenge. Our values – integrity and care, courage and humility, teamwork and excellence – guide all of us. Our diversity and inclusiveness strengthen us, and on behalf of myself and the Commission, we thank them for their dedication and commitment to the public interest and the welfare of the people as a whole.”ENDSFurther InformationGheorghe Rusu | 086 102 9986 | gheorghe.rusu@centralbank.ieMedia Relations Office | media@centralbank.ie Notes to EditorGovernor Makhlouf has written a blog on the Annual Report, containing an overview of the economic outlook, a summary of the Central Bank’s achievements and an update on our financial position at the end of last year. 

In his latest blog, Governor Gabriel Makhlouf writes about the release of the latest Annual Report and Annual Performance Statement. He uses his blog to reflect how the Central Bank delivered on its mandate for the people of Ireland and gives an overview of the economic outlook, summarises achievements and provides an update on the financial position at the end of last year.

Warning:Unauthorised Investment Firm / Investment Business Firm Unauthorised Firm NameFTI Finance Limited (CLONE)Website• https://client.ftifinanceltd.com/auth/login• https://ftifinance-ltd.com/ • https://ftifinancelimited.comEmail address used• support@ftifinancelimited.com• support@ftifinance-ltd.comAuthorisation in IrelandFTI Finance Limited (CLONE) is not authorised to operate as an investment firm or investment business firm in Ireland.Additional InformationThis scam firm cloned the details of a Central Bank of Ireland authorised entity of the same name in order to add an air of legitimacy to the scam.  It should be noted that there is no connection whatsoever between the legitimate firm and the scam entity.Notes:Any person wishing to contact the Central Bank with information regarding such firms / persons may telephone (01) 224 5800 or report an unauthorised firm directly to the Central Bank.For more information on how to protect yourself from financial scams, please visit www.centralbank.ie/financialscams The name of the above firm is published under section 53 of the Central Bank (Supervision and Enforcement) Act 2013.

 Warning:Unauthorised Irish Collective Asset-Management Vehicle (ICAV)Unauthorised Firm NameInsight Investment Solutions ICAV (CLONE)Website Addresshttps://investmentsolutionsfunds.eu/Telephone Number 02890137409Email Addressinfo@insightinvestment.ieAuthorisation in IrelandThe Clone Firm is not authorised to provide financial services in Ireland.Additional InformationThe Clone Firm is using the name and  Central Bank Registration Number of the legitimate Central Bank authorised Fund, Insight Investment Solutions ICAV, in order to deceive consumers.It should be noted that there is no connection whatsoever between the Central Bank authorised fund and the scam entity.Notes:Any person wishing to contact the Central Bank with information regarding such firms / persons may telephone (01) 224 5800 or report an unauthorised firm directly to the Central Bank.For more information on how to protect yourself from financial scams, please visit www.centralbank.ie/financialscams The name of the above firm is published under section 53 of the Central Bank (Supervision and Enforcement) Act 2013.  

Warning:Unauthorised Investment Firm / Investment Business Firm / Crypto-Asset Service ProviderUnauthorised Firm NameAMOVA Asset Management Ireland Limited (Clone)Websitehttps://amova-assets.com/Email address usedadmin@amova-asset.comAuthorisation in IrelandAMOVA Asset Management Ireland Limited (Clone) is not authorised to operate as an investment firm, investment business firm or provide crypto-asset services in Ireland.Additional InformationThis firm cloned the details of a legitimate firm in order to add an air of legitimacy to the scam.  It should be noted that there is no connection whatsoever between the Central Bank authorised firm of the same name and the scam entity.Notes:Any person wishing to contact the Central Bank with information regarding such firms / persons may telephone (01) 224 5800 or report an unauthorised firm directly to the Central Bank.For more information on how to protect yourself from financial scams, please visit www.centralbank.ie/financialscams The name of the above firm is published under section 53 of the Central Bank (Supervision and Enforcement) Act 2013.

  Warning:Unauthorised Investment Firm / Investment Business Firm Unauthorised Firm NameApel Investments trading name of Apel Financial Services Distribution (CLONE) Website(s)• https://apelinvestments.com• https://client.apelinvestments.com/register• https://client.apelinvestments.com/login• https://apelinvestments.com/metatrader/• https://apelinvestments.com/webtrader/ Email address(es) used• support@apelinvestments.com• help@apelinvestments.com• claim@apelinvestments.com• sup@apelinvestments.com• executiveqc@apelinvestments.com• privacy@apelinvestments.com• aleksander.dinovic@trading-advisors.com• alex.d@financial-advisors.com• lorenzo.lombardi@stockeuromarket.com Phone number(s) used+393476031560+442039151936+442039511096+442039513057 Authorisation in IrelandApel Investments (CLONE) is not authorised to provide Investment services or Investment Business services in Ireland. Additional informationThis Unauthorised Firm has cloned details of a Central Bank authorised firm and has been seeking to pass itself off as the legitimate firm, APEL Financial Distribution Services Limited, in order to deceive consumers.It should be noted that there is no connection between the Central Bank authorised firm and the Unauthorised Firm. Notes:Any person wishing to contact the Central Bank with information regarding such firms / persons may telephone (01) 224 5800 or report an unauthorised firm directly to the Central Bank.For more information on how to protect yourself from financial scams, please visit www.centralbank.ie/financialscams The name of the above firm is published under section 53 of the Central Bank (Supervision and Enforcement) Act 2013. 

Warning:Unauthorised BankerUnauthorised Firm NameHSBC Continental Europe (CLONE)Websitehttps://campaign.eligibility-advisorscorporate.com/Telephone Number(01) 6214 2195(07) 4313 0963Email address usedhsbc@corporate-dublin.comAuthorisation in IrelandThis scam entity cloned the name and details of a firm authorised by the Central Bank and has been seeking to pass itself off as the legitimate firm, HSBC Continental Europe, in order to deceive consumers.Additionally, the scam entity has cloned the Central Bank authorisation number CBI00001421, which is legitimately assigned to Cowan Insurance Brokers Limited. There is no connection between Cowan Insurance Brokers Limited and this fraudulent entity.Notes:Any person wishing to contact the Central Bank with information regarding such firms / persons may telephone (01) 224 5800 or report an unauthorised firm directly to the Central Bank.For more information on how to protect yourself from financial scams, please visit www.centralbank.ie/financialscams The name of the above firm is published under section 53 of the Central Bank (Supervision and Enforcement) Act 2013.

Warning:Unauthorised Investment Firm / Unauthorised Investment Business FirmUnauthorised Firm NameEuro Bonds Finder/Irish Rates FinderWebsitehttps://eurobondsfinder.com/Authorisation in IrelandEuro Bonds Finder/Irish Rates Finder is not authorised as an investment business firm in Ireland.Notes:Any person wishing to contact the Central Bank with information regarding such firms / persons may telephone (01) 224 5800.For more information on how to protect yourself from financial scams, please visit www.centralbank.ie/financialscams The name of the above firm is published under section 53 of the Central Bank (Supervision and Enforcement) Act 2013.

Warning:Unauthorised Investment Firm / Investment Business FirmUnauthorised Firm NameResearch Vision Limited (CLONE)Website addresswww.researchvision.comEmail addresses usedmichael.parker@researchvision.com info@researchvision.com privacy@researchvision.com trading@researchvision.com client.services@researchvision.comTelephone Numbers+44 2070978261+44 2070978260+44 7403934849Authorisation in IrelandResearch Vision Limited (CLONE) is not authorised to operate as an investment business firm or investment firm in Ireland.This scam firm cloned details of a legitimate FCA authorised firm, Research Vision Limited, in order to deceive consumers.There is no connection between the legitimate firm and this fraudulent entity.Notes:Any person wishing to contact the Central Bank with information regarding such firms / persons may telephone (01) 224 5800 or report an unauthorised firm directly to the Central Bank.For more information on how to protect yourself from financial scams, please visit www.centralbank.ie/financialscams The name of the above firm is published under section 53 of the Central Bank (Supervision and Enforcement) Act 2013.

Warning:Unauthorised Investment Firm / Investment Business FirmUnauthorised Firm NameCompare Bonds LtdWebsitehttp://www.comparebondrates.eu/Email address usedinfo@bondratecompare.comAuthorisation in IrelandCompare Bonds Ltd is not authorised to operate as an investment business firm or investment firm in Ireland.Notes:Any person wishing to contact the Central Bank with information regarding such firms / persons may telephone (01) 224 5800 or report an unauthorised firm directly to the Central Bank.For more information on how to protect yourself from financial scams, please visit www.centralbank.ie/financialscams The name of the above firm is published under section 53 of the Central Bank (Supervision and Enforcement) Act 2013.

Warning:Unauthorised Banking Business / Unauthorised Payment ServicesUnauthorised Firm NameFire Financial Services Limited (CLONE)Website Addresses used• www.financeportfolio.net • www.fire.com.de • www.centralbank.ie.de • www.revenue.ie.de • www.department-of-finance.ie.deEmail address used• accounts@compliance-fire.com• fire-support@fire.com.de• fire.support@fire.com.de• support@fire.com.de• fire-eu@fire.com.de• fire@fire.com.de• info@fire.com.de• fireservices@fire.com.deTelephone Numbers used• +1 646 583 2475• +353 1 4378512• +353 1 224 6000• +353 4 671 6561• +49 160 249 76 46• +353 12337826Authorisation in IrelandFire Financial Services Limited (CLONE) is not authorised to provide banking business or payment services in Ireland.The unauthorised firm has used the name, address and Central Bank of Ireland Authorisation Number of the legitimate firm, in order to deceive consumers.There is no connection between the legitimate Central Bank authorised firm, Fire Financial Services Limited (C58301) and this fraudulent entity.Additional InformationThe unauthorised Clone Firm appear to be engaged in an inheritance scam, whilst using fake documentation, allegedly from third parties.Notes:Any person wishing to contact the Central Bank with information regarding such firms / persons may telephone (01) 224 5800 or report an unauthorised firm directly to the Central Bank.For more information on how to protect yourself from financial scams, please visit www.centralbank.ie/financialscams The name of the above firm is published under section 53 of the Central Bank (Supervision and Enforcement) Act 2013.

Good morning and welcome to the launch of our first Financial Stability Review of 2026. During 2026, risks facing the domestic financial system from the global environment have intensified. In 2025, the origin of external risks related primarily to swings in global trade policy. This year, the origin relates to the pricing, and the sustainability of global energy supplies, following the start of the war in the Middle East. This shock, coming less than a year after the previous trade shock, and with no immediate sign of a resolution, increases the potential for tail systemic risks. The global growth outlook has weakened, while inflationary pressures have increased. Financial markets have continued to function in an orderly manner, although the contained reaction, has been noticeably at odds with economic narratives, on the increasing risks posed by a prolonged energy price shock. This enhances the risk of a sudden tightening of global financial conditions, with a wider reappraisal of risk, amplifying any economic downturn. The growing role of highly leveraged, global, non-bank financial intermediaries in key financial markets compounds this amplification channel. If the conflict persists for longer-than-expected, the economic and financial consequences could trigger the simultaneous materialisation of one, or more, preexisting risks. Growing sovereign debt limits fiscal capacity to absorb the materialisation of such shocks. Such pressures come at a time, when governments must also continue to adjust to new trading norms, and build long-run productive capacity, including preparing for the climate transition.  Additionally higher yields and uncertainty in sovereign bond markets can, in turn, impact broader financial conditions.  Prior to the war, other fragilities were already apparent across the international financial system and remain relevant. High valuations for AI-related stocks, buoyed by strong reported earnings, raise the potential for a market correction, or sector-level disruption, if the global macro-financial outlook deteriorates or if earnings disappoint. The increasing use of debt and circular deals to fund large AI investment plans further raise financial stability concerns. Additionally private and public credit markets are being used by software and AI companies creating contagion channels across sectors and markets. Private credit markets, themselves, are also subject to much scrutiny at present, particularly in the United States. Such markets provide finance outside of traditional channels but are opaque, and concerns on valuations, asset quality and liquidity have led to a spike in redemptions in some US private credit funds. A marked slowdown in global economic activity combined with tighter financial conditions could trigger a reappraisal of risk pricing in either AI-related investment or in private credit markets, or in both given the interlinkages.  Further, heightened geopolitical tensions and rapid developments in artificial intelligence create an evolving cybersecurity landscape. The financial system has bolstered its operational resilience in recent years but will need to continue to evolve with technological changes to ensure limited disruption to core financial services, which could have wider economic consequences.Therefore, our assessment is that the risks posed by the external environment remain elevated and have intensified since the last Review. {The European Central Bank also releases its Financial Stability Report this morning and similarly highlights that financial stability vulnerabilities in the euro area remain elevated.}Countering these higher external risks, is the accumulated resilience currently evident across the domestic financial system, with strong aggregate balance sheets and modest leverage. Growth in the underlying domestic economy, in tandem with strong performance of the internationally orientated multinational sector, has provided a strong buffer in recent years. But an uncertain external environment creates risks to the outlook. We will be presenting our next Quarterly Bulletin in June with our updated economic forecasts. Any fiscal response to deal with the distributional consequences of the current energy shock needs to be time bound and tailored to those most affected. From a financial stability perspective, sustainable fiscal policy is needed to support broader macro-financial resilience.  The Central Bank, through our prudential policies and guidance, promotes the preservation of financial system resilience, to both traditional financial risks and emerging non-financial risks. Continued focus on operational resilience, prudent lending standards and maintaining buffers of loss-absorbing capital and liquidity remain important foundations for limiting the amplification of external shocks through the financial system. Based on internal estimates, the domestic banking system has limited direct exposures to core private credit activities or to US large technology company equities. However, the sector would not be immune to second-round effects from shocks in these markets, or to a deterioration in borrower resilience if economic conditions worsen. Therefore, we are maintaining the Countercyclical Capital Buffer rate at 1.5 per cent to preserve resilience.  Finally, these uncertain times with many potential cross-border systemic risks, underscore the importance of preserving the core benefits of global regulatory standards and maintaining international financial stability cooperation.  Our Director of Financial Stability, Mark Cassidy, will now cover the assessment underpinning the main messages of our Financial Stability Review.