In this blog, Governor Gabriel Makhlouf writes about the development of the Digital Euro and how central banks foster trust and safety in the financial system and in the implementation of projects like the Digital Euro.

The Central Bank of Ireland has today (5 December) launched a public consultation on the implementation of our new Access to Cash responsibilities.Deputy Governor Vasileios Madouros said: “Amid a rapidly evolving payments landscape, the Central Bank of Ireland is committed to making sure that cash continues to be readily available as a means of payment. Today’s consultation is an important step towards the implementation of the Central Bank’s new responsibilities under the Access to Cash legislation.”The public consultation covers two parts of the new Access to Cash regime.Firstly, the new legislation provides for the identification of local deficiencies in the cash infrastructure. That relates to certain geographical areas where there may be particular difficulties in accessing cash, even if the Access to Cash criteria are being met. The Central Bank is required to prepare guidelines setting out how we will receive notifications, undertake assessments, and make determinations regarding local deficiencies in cash infrastructure. Today’s public consultation is seeking views on our proposed guidelines.Secondly, we are consulting on setting minimum ATM service standards and notifications requirements for firms operating ATMs. In 2026, we will publish regulations outlining ATM service standards relating to the hours of ATM availability, cash withdrawal limits, banknote denomination stocking, maximum ATM unavailability periods, and signage and information requirements.  The regulations will also set out requirements for ATM operators to notify the Central Bank and the public when they intend to make changes to their business.Deputy Governor Vasileios Madouros said: “This is an opportunity for members of the public and key stakeholders to have a say in how these important elements of the legislation will be implemented. We want to hear a wide range of views, so that we can implement these provisions in an effective, balanced and proportionate manner.”The period of open public consultation will run from 5 December 2025 until 4 March 2026. We welcome feedback on one or both parts of the consultation, and feedback can be provided in a single response, if preferred.The Central Bank of Ireland will also engage directly with consumers, people with disabilities, older people and SMEs, in particular in the retail and hospitality sectors, during the first three months of 2026.ENDSFurther InformationAdditional information and the consultations are available on the Central Bank of Ireland website.

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Cathaoirleach and Committee members, thank you for the invitation to be here today to discuss digital banking.  I am joined by my colleagues Yvonne Madden, Head of Domestic Banks and Retail Credit, and Peter Gallagher, Head of Enforcement Market Abuse and Oversight.IntroductionThe digitalisation of financial services has brought many benefits to consumers. The EU system of regulation provides an important platform from which to continue to innovate in an environment that secures consumers’ best interests. But digitalisation has also changed how, as consumers, we receive services (financial or otherwise) and our norms and expectations around digital services and our use of technology generally continues to evolve. Regulation is playing its role to provide guardrails for this digital evolution by setting out standards for: New types of digital products such as crypto assets (MiCAR)1; Making sure there is continuity and smooth recovery if systems go down (DORA)2; andDealing with the implications of Artificial Intelligence and codifying the requirements and rights of consumers when making payments (PSD)3. Importantly, many of these regulations are prescribed at EU level. This is good because it enables us to access regulated financial services not just from entities incorporated in Ireland but also from firms in other EU Member States.4 Let us also be clear that operating in an EU system of regulation does not mean there is no role for national policies for how this digital evolution occurs. It should also be noted that the substantive requirements of banking regulation are the same for an EU bank whether it provides those services through bricks and mortar premises or digitally, and regardless of which EU Member State it is incorporated in.  But the benefits of digitalisation will only be realised if the risks are appropriately addressed. Just as digitalisation has brought in convenience, additional functionality and lower cost for many consumers, it has also brought new opportunities for criminals to exploit. And, it has resulted in variations and gaps in the nature and quality of service consumers receive, in particular when things go wrong. These are topics on which the Central Bank has work underway, including working with other agencies in Ireland, the EU and internationally, and I welcome the opportunity to explain this work and share our perspective on the path ahead.Digital frauds and scamsTo take one of the key risks, that of digital frauds and scams, the Central Bank’s work can be described under three headings:  First, working with other law enforcement agencies to combat financial crime, to minimise the threat of frauds and scams to which consumers are exposed in the first place. Secondly, continuing to raise standards in the firms we regulate, so they protect and support their customers, including when they fall victim to frauds and scams.Thirdly, supporting public policy and legislation, so we keep pace with the policy implications of technology and the types of criminal behaviour to which consumers are exposed. Under this heading, the Central Bank supports the reforms underway at EU level to strengthen fraud prevention, broaden liability for financial service providers for certain frauds and place additional statutory responsibilities on electronic communications service providers. Evolving our approach to supervising financial services provided digitallyWe are also evolving our supervisory approach to target risks relating to digitalisation more generally, including operational resilience and cyber security. And we see that digitalisation brings increased risks to financial services from technology platforms and means of communication that sit outside financial services. These risks must be tackled if we are to avoid actions outside financial services damaging people’s trust in financial services, while also making sure of course that financial service firms are responsible in how they use technology. Since our previous appearance before this Committee on fraud, the Central Bank has engaged with large technology platforms incorporated in Ireland to get them to implement additional controls to combat unauthorised financial service providers (in some cases with considerable success).  In addition, we are the first authority in Ireland to secure the EU statutory status of "trusted flagger" for financial frauds and scams and we have led coordinated engagement with these technology platforms at a global level.5 We are also introducing new requirements in our Consumer Protection Code from March 2026 to ensure the firms we regulate use technology with a customer focus and not in a way that seeks to unfairly exploit or take advantage of consumers to their detriment. The Code will also enhance protections for consumers in vulnerable circumstances. ConclusionDigitalisation and access to an EU regulated market bring great benefits for us as consumers. Digitalisation also brings new risks and the threat posed by criminals is significant and system-wide work is required. The Central Bank is active in that work at national, EU and international level and we will play our part.It is also accurate to say that there remains a lot that firms can do at a practical level to improve the quality of service they provide, whatever their business model. This too will continue to be an area of focus in our supervisory work, including as we implement new regulatory requirements in 2026.  Thank you for your attention. I and my colleagues are happy to take your questions.[1] New types of digital products such as crypto assets (MiCAR).[2] Making sure there is continuity and smooth recovery if systems go down (DORA).[3] Dealing with the implications of Artificial Intelligence and codifying the requirements and rights of consumers when making payments (PSD)[4] Passporting arrangements also extend to countries in the European Economic Area (EEA)[5] "Trusted flagger" for financial frauds and scams and we have led coordinated engagement with these technology platforms at a global level.

Ireland has among the lowest levels in the EU of direct retail participation in capital markets, with people tending to prefer to hold their wealth in property, life assurance and pensionsIreland does not yet have all the key factors to success in place to support retail investmentThe Central Bank of Ireland has today (1 December) published consumer research and analysis of retail investment in Ireland.Comparing data on the financial assets of Irish households against other EU countries, Ireland has among the lowest levels of direct participation in capital markets through listed equity, debt securities and investment funds; with Irish people tending to a greater extent to hold their wealth and savings in property, life assurance and pensions. The research finds that wealthier households are responsible for the vast majority of direct and indirect participation in capital markets. Retail investors in Ireland are more likely to have a higher level of educational attainment, be in employment, have higher income levels, be male, be aged between 35 and 54 and live in the greater Dublin area.The report finds that the decision to invest is driven by a complex interplay of factors and that individuals are motivated to start investing by practical and aspirational financial goals. Key barriers to investment identified in the report include a perceived lack of financial resources, psychological barriers such as fear and lack of trust, lack of knowledge and understanding about investment and lack of support and advice.The report also points to measures to tackle these barriers and improve retail investment. These include product options and financial education measures. Some 10% of people report owning crypto-assets, predominately young males. The amounts tend to be small (€2,266 average) and mostly for reasons other than providing for their financial future (e.g. 56% cite curiosity as their reason). Deputy Governor Colm Kincaid said: “A properly functioning financial market must reflect and serve the needs and preferences of all consumers and investors. This research provides a comprehensive society-wide insight into those needs and preferences which can inform public policy at an important juncture, as we look to improve access to capital markets for retail investors. In particular the research shows that, as things stand, financial services is not effective in reaching the full population of potential investors. This means Irish households may not be getting the full benefit of what financial services could do to help them provide for their future.”ENDS

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The Central Bank today (28 November 2025) announced the appointment of Karen O’Leary as the new Director of Enforcement. The appointment will take effect from 1 January 2026.Karen brings an extensive breadth of experience to this role, most recently as Director of Currency, Workplace & Regulatory Services. Prior to that Karen headed up the Bank’s Payments & Securities Settlements (PSS) Division and before that she led the Bank’s Organisation Development Division. Karen was a Commission Member in the Competition & Consumer Protection Commission (CCPC) from 2014-2017 and oversaw Criminal Enforcement and Legal Services as well as being co-decision maker on all civil enforcement functions of the CCPC.  She also served as CEO of the National Consumer Agency from 2013 until its amalgamation with the Competition Authority to form the CCPC. Karen replaces Colm Kincaid, who was appointed Deputy Governor, Consumer & Investor Protection. Announcing the appointment, Governor Gabriel Makhlouf said: “I am very pleased to announce Karen O’Leary as the Central Bank’s new Director of Enforcement. Karen brings a wealth of financial services, consumer protection and Central Bank experience to this important role. The Central Bank’s enforcement strategy is aimed at promoting principled and ethical behaviour in regulated entities. The Central Bank takes appropriate action where regulated entities and individuals fall short of expected standards. Karen’s leadership will be critical in continuing the delivery of our enforcement strategy in a rapidly changing financial system”.ENDS

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Good morning,On behalf of the Central Bank of Ireland, it is a pleasure to welcome you all to this joint FinCoNet and Central Bank of Ireland international seminar.1  A particular welcome to the FinCoNet delegates from 42 different jurisdictions and representatives from the OECD and World Bank who we have been delighted to host over the course of this week for the 2025 Annual General Meeting of FinCoNet.  And congratulations to FinCoNet Chair, Juliana Mozachi-Sandri (Central Bank of Brazil) and Vice Chair, Frank Lofranco (Financial Consumer Agency of Canada) as well as the OECD Secretariat (and Central Bank staff) for such a successful Annual General Meeting. At this morning’s event we welcome a diverse range of stakeholders, international regulators, civil society groups, consumer advocates, industry representatives, trade associations, as well as colleagues from the Department of Finance and other public sector bodies.  I am delighted to welcome the Chair of the Central Bank’s Consumer Advisory Group, Isolde Goggin, the Chair of Ireland’s Competition and Consumer Protection Commission, Brian McHugh, and Ireland’s Financial Services and Pensions Ombudsman, Liam Sloyan. There is an Irish expression that seems appropriate for today’s event: “Ní neart go cur le chéile”.  It means “There is no strength without unity". This is perhaps never more important than today in the field of financial consumer protection, as we work to solve problems that are increasingly complex, interconnected and transcend national borders. A whole-of-system, unified, and internationally coordinated approach is required if we are to be successful in supporting better consumer outcomes. FinCoNet is admirably placed to play an important role in this global context. I remember FinCoNet’s founding meeting in 2013, chaired by a former Central Bank of Ireland colleague, Bernard Sheridan and attended by others I see here today. Those founding members established FinCoNet with the mission to promote sound market conduct and strong consumer protection through effective supervisory standards and sharing of best practices among supervisors around the world. Since that founding meeting, FinCoNet has grown from strength to strength. Today, FinCoNet member regulators supervise financial services provided to just over half the people on the planet.  As a founding member of FinCoNet, the Central Bank of Ireland is therefore especially proud to host this year’s Annual General Meeting.  This has involved 3 days of events with over 86 delegates from 42 different jurisdictions attending in person.  Reflecting the digital age in which we live, we have had strong participation virtually.  In total this week, we have hosted over 450 delegates and domestic stakeholders from financial services firms, consumer and industry bodies, academia and public life, both onsite and online.  Over the course of the week discussions have included digitalisation and oversight of AI, conduct supervision in retail credit, cost-of-living and the fair treatment of consumers, as well as an industry workshop on Buy Now Pay Later.   My thanks to Banking and Payments Federation Ireland and the regulated firms involved for taking part in that workshop.  Thanks also to Juliana Mozachi-Sandri and to Magda Bianco (Banc d’Italia) for their participation in our Financial System Conference earlier this week, bringing the benefit of their international experience to our discussions. I also congratulate FinCoNet on the theme they have chosen for today’s event: Strengthening Financial Consumer Protection and Supervision in an Increasingly Digitalised World.  Digital innovation is supporting how consumers engage and access financial services, and it brings many benefits.  It also brings new risks. International standards, such as the G20/OECD High Level Principles on Financial Consumer Protection have an important role to play here. They offer a roadmap for countries to improve existing approaches and develop new ones in the face of digital transformation. Here in Ireland, the Central Bank is implementing the welcome recommendations from the OECD’s 2024 review of our supervisory functions. The implementation of these recommendations is supporting the modernisation of our supervisory approach.  Next week, the Central Bank of Ireland will host a virtual event for FinCoNet members to share our experience of the more integrated supervisory approach we have adopted, into which we are incorporating these important OECD findings.In Europe, such international standards are implemented and supported by a mix of European and national initiatives, including the EU digital finance package. This includes the Markets in Crypto Assets Regulation (MiCAR), the Digital Operational Resilience Act (DORA) and the AI Act.   These frameworks aim to ensure effective responses to emerging innovations and risks while supporting benefits to consumers.At domestic level, the Central Bank of Ireland will bring a modernised Consumer Protection Code into force in March 2026. It includes provisions to require regulated financial service providers to ensure technology they use is designed and implemented with a customer focus and not in a way that seeks to unfairly exploit or take advantage of consumers to their detriment. I believe that, in the period ahead, regulatory regimes such as these will be key to maintaining consumer trust and confidence in digital financial services.  FinCoNet is making an important contribution in this endeavour, since in the end of the day, our regulatory frameworks will only be as good as how we supervise and enforce them. As digitalisation transforms financial services across the world, it also brings into sharper relief the need to have a shared view of what we expect financial services to deliver for its users, what ‘good looks like’ in terms of substantive consumer outcomes. I welcome therefore the working definition of ‘financial well-being’ published in the 2024 G20 Policy Note and we support the work of the OECD Working Party on Financial Consumer Protection, Education and Inclusion to further develop and measure this concept. In 2026, this will include a joint meeting of that Working Party and FinCoNet to further advance our thinking on this and other aspects of financial consumer protection, education and inclusion. Let me conclude there. I wish you all the best in your discussions today. Your expertise and insights will be crucial if we are to be successful in our collective endeavour of ensuring a financial system where innovation thrives in an environment that secures consumers’ best interests. I also look forward to FinCoNet continuing to go from to strength.Thank you. [1]  My thanks to Mark Kavanagh, Verona Hanlon and Bairbre Keogh for their assistance in preparing these remarks. 

Central Bank of Ireland welcomes today’s announcement by the Tánaiste and Minister for Finance that regulations relating to the Finance (Provision of Access to Cash Infrastructure) Act will come into effect this week.As required by the Act, the Minister for Finance prescribes the percentage of the population that must be within a specified distance of an ATM and a cash service point and sets the minimum number of ATMs per 100,000 people in each NUTS1 region. Under the Act, certain credit institutions – referred to as designated entities – will be responsible for maintaining access to cash at minimum levels. The Minister prescribes the percentage shares of current accounts and household deposits that a credit institution may have that will determine whether they are a designated entity. The Minister consulted with the Central Bank prior to prescribing the criteria. Governor Gabriel Makhlouf said: “Amid a rapidly changing payments landscape, the Central Bank is committed to ensuring cash is readily available as a means of payment. The regulations announced today are an important step towards ensuring that consumers continue to have access to cash and in protecting the resilience of the cash system. They will also provide for the fair, orderly and transparent management of Ireland’s cash infrastructure as payment preferences continue to evolve.” The Act provides for new responsibilities for the Central Bank, including monitoring compliance with the access to cash criteria set in these regulations as well as oversight of operators of ATMs and cash-in-transit providers. The Central Bank will continue to work with key cash cycle stakeholders as the focus shifts towards implementation of the new legislation.  Key elements of this work include:  Access to cash monitoring and publication - the Central Bank will gather data on a quarterly basis in relation to the number, location and hours of availability of ATMs and cash service points (e.g. retail bank branches and post offices). The data will also be used to publish information on a quarterly basis on the Central Bank website. The first publication of this cash infrastructure data is expected early next year. The Central Bank will monitor this data to assess compliance with the Act and assess proposals by designated entities to remedy non-compliance. Service standards – the Central Bank will commence consultation before the end of the year on proposed regulations for minimum ATM service standards. This will outline proposed requirements for ATM operators including the hours of ATM availability, cash withdrawal limits and banknote denominations available from ATMs. Service standards will apply following completion of this consultation process and the subsequent making of the relevant regulations by the Central Bank.Local deficiencies – the Act provides for the identification and remedying of local deficiencies – i.e. where particular difficulties in accessing cash may arise in certain areas. The Central Bank will commence consultation before the end of the year on proposed guidelines outlining how individuals and businesses can notify the Central Bank about a potential local deficiency. The Central Bank will publish local deficiency guidelines by 30 June 2026, following which the Central Bank will be responsible for reviewing notifications from the public where they believe there is insufficient access to cash services in an area. Following analysis and assessment, the Central Bank will, where appropriate, notify the designated entities of a local deficiency and require that they take steps to address the local deficiency.Further information on Access to Cash can be found on the Central Bank of Ireland website. Further InformationElaine Scanlon 087 2136313[1] In Ireland, the definition of NUTS 3 refers to eight statistical regions. The "Nomenclature of Territorial Units for Statistics" (NUTS) is a system of the European Union for defining territorial units for the production of regional statistics, with NUTS 3 being the smallest subdivision level used for specific diagnostic purposes within the EU.   

Good morning everyone.1I am delighted to join you here today for this year’s Climate Finance week.“The scientific evidence that climate change is a serious and urgent issue is […] compelling.”“The benefits of strong, early action on climate change outweigh the costs.”And “the choices made in the next 10-20 years […] will affect greenhouse gas emissions for the next half-century.”These are not my words. And they are not recent words. They are key conclusions from the Stern Review on the “Economics of Climate Change”.2That was published almost two decades ago now.Fast-forward to today, and we know that greenhouse gas emissions globally have not followed the path advocated for at the time. As a result, the planetary, societal and macrofinancial risks from climate change have intensified over the past two decades. Central banks and regulators globally – including ourselves – have made a concerted effort in recent years to strengthen our understanding of the macrofinancial effects of climate change.This is an essential building block to allow us to take the appropriate actions needed to deliver our mandate.So, in my remarks today, I will focus on those macrofinancial effects.Progress towards decarbonisation has been slower than intended by the Paris AgreementThe starting point for that, of course, is the scientific evidence on human-induced climate change. Today’s event marks a decade since the Paris Agreement in 2015, a landmark moment in the global fight against climate change. It is important to recognise that we have seen tangible outcomes from countries’ collective actions since then, illustrating what can be achieved when nations come together. Global greenhouse gas emissions are now projected to be around 12 per cent below 2019 levels in 2035. This compares to a projected increase in emissions of between 20-48 per cent, before the adoption of the Paris Agreement.3Put differently, we are no longer on a trajectory towards the very worst-case scenarios that were once feared.I emphasize that because – in Dr. Jane Goodall’s words – “without hope, we fall into apathy, and do nothing”.4However, it is also clear that we have not done enough. Global warming projections over this century, based on the full implementation of countries’ Nationally Determined Contributions (NDCs), exceed 2°C (Chart 1). 5Chart 1: Projected global temperature change under different scenariosSource: NGFS Phase 5 Scenario Explorer Rising temperatures, more frequent and severe weather events, and disruptions to communities, economies and financial systems remain pressing concerns. In Ireland, we have also made progress in reducing carbon emissions, which are down around 12% since 2018 (Chart 2).6Chart 2: Ireland's greenhouse gas emissions and carbon budgetsSource: EPA. Over the same period, our population has grown by around 10% and the size of the domestic economy by around 30% in real terms. So we have seen a very positive decoupling between economic activity and emissions.However, the Climate Change Advisory Council’s latest assessment is clear that Ireland is not on track to meet its EU and national emissions reduction targets by 2030.7And that we will exceed the carbon budget allocation for 2021-2025. Progress across sectors has been uneven, with transport and agriculture, which collectively account for approximately 55% of Irish emissions, having seen smaller emission reductions (Chart 3).Chart 3: Sectoral changes in emissions in Ireland, 2018-2024Source: EPAThe macroeconomic costs of climate change outweigh those of the transition to net zeroLet me now turn to our understanding of the macrofinancial effects of climate change and the transition to a climate-neutral economy. The Network for Greening the Financial System (NGFS) – a coalition of central banks from around the world, including ourselves – has been instrumental in the journey of deepening our understanding of the macroeconomic effects of climate change. The NGFS has developed a set of macroeconomic scenarios that assess the potential economic impacts of climate-related physical and transition risks.Let me draw out three key insights from this work.First, the global macroeconomic costs of climate change are material.Under a scenario consistent with current nationally-determined contributions, the level of global GDP would be 13% lower by 2050 (Chart 4).8Chart 4: Global GDP impact of different decarbonisation scenariosSource: NGFS Scenarios (Phase V).The crystallisation of physical risks would be the main factor depressing economic activity in this scenario.Economic losses deepen with time, as higher temperatures caused by a lack of mitigation efforts result in higher chronic physical risk. Second, these estimates represent a stark increase from earlier assessments (Chart 5).Chart 5: The estimated impact of climate change on economic activity has increasedSource: NGFS Scenarios.This is due to updated estimates of the economic damage of climate change, especially on the persistent effects of rising temperatures and precipitation on the economy. To be clear, there is uncertainty and debate around those estimates, as climate physical risk remains a highly complex field, but major improvements have been made recently.Third, the macroeconomic costs of taking action to reduce greenhouse emissions are much smaller than the costs associated with inaction.The NGFS has also provided a scenario consistent with an orderly and gradual transition to net zero by 2050 (Chart 4).This still entails economic losses, because climate change still occurs under that scenario. And transition-related losses are also somewhat higher than under the NDC scenario (Chart 6).Chart 6: The main impact on economic activity stems from physical risksSource: NGFS Scenarios (Phase V).But overall economic losses are smaller under an orderly and gradual transition. And the gap between overall economic losses in the two scenarios increases over time. Put differently, the main conclusion around the relative costs of action versus inaction remains the same as in the Stern Review two decades ago, only starker.Of course, there will be macroeconomic costs during the transition. For Ireland, estimates suggest that additional investment of over €50bn is likely to be needed until 2050 to meet decarbonisation targets, most of it incurred over the next decade (Chart 7).9Chart 7: The transition to climate neutrality will require additional investmentSource: Central Bank of Ireland, based on TIM model.Work we have done with the Climate Change Advisory Council suggests that – in an economy with little spare capacity – undertaking those investments will require redirecting some scarce resources away from the tradeable sector of the economy.10This would entail some macroeconomic costs throughout the course of the transition, although these are estimated to be relatively modest.And, in the longer-run, especially given Ireland’s heavy dependence on imported fossil fuels, a transition to a climate-neutral economy will also entail long-term economic savings. Ongoing analysis on options for recycling revenue from carbon taxes also indicates that there are policy choices that can reduce the costs, and enhance the benefits, of that transition.This work forms the foundation for the economic advice we provide to the government around the macroeconomic trade-offs associated with Ireland’s transition to climate neutrality.The exposure to rising physical risks requires adaptation investmentIn addition to a macroeconomic lens, we have made progress in evaluating sectoral exposures to climate-related financial risks.There are many different potential sources of physical risks for Ireland, but by far the main one stems from an increased likelihood of flooding, severe storms and rising sea levels.So let me focus on that to illustrate the point. As we have already seen, flooding can cause significant damage to property and infrastructure, leading to economic losses for households and businesses, as well as the financial system.Climate science provides us with a quantification of the future risk of floods in Ireland. The Office of Public Works’ (OPW) extensive nationwide analysis considers different future flood risk scenarios, with different combinations of rising sea levels and increases in rainfall. But assessing financial risks requires translating these climate-related insights into potential economic losses.To do that, my colleagues at the Central Bank have been working with the OPW to create a national dataset mapping every property in Ireland to current and future flood risks. That can be used to estimate future damage costs and link properties to exposures of the financial sector. This analysis helps us quantify the rising financial risks stemming from climate change. For example, we estimate that the share of the value of loans to businesses at risk of flooding would more than double under the OPW’s high-end scenario (Chart 8).11Chart 8: The share of loans to companies at risk of flooding is estimated to more than double under the OPW’s high end scenarioSource: Ahangarkolaee et al (2025) ‘Measuring flood risk in business lending’, Behind the Data.There are compounding factors to these direct effects. First, the closer we get to that world, the higher the risk of underinsurance. Separate work by the Central Bank on the flood protection gap has shown that approximately 1 in 20 buildings already face difficulties accessing flood insurance.12And close to 90% of the economic cost of flooding relates to higher-risk buildings that have limited or no insurance access.That’s where we are now. But, in the future, as flood risk worsens, so does the potential risk of uninsured losses.Indeed, we estimate that the value of losses for those with limited access to insurance would increase by almost 50% under the OPW’s high-end scenario. Second, our work on flood risk has also revealed how physical risks are already impacting credit conditions. Forthcoming research suggests that loans to borrowers in flood-prone areas face higher interest rates and are more likely to be asked to post collateral for borrowing.Third, there is evidence of a flood risk premium in the property market, suggesting that a higher risk of flooding would also affect asset valuations.13Putting this all together – higher risk of damage, higher risk of underinsurance, impacts on credit conditions and impacts on valuations – it is clear that rising flood incidence due to climate change can increase the risk of economic losses for households and business.Amongst others, these insights also speak to the importance of adaptation efforts.Because the unfortunate reality is that the climate is changing, and will continue to change going forward, even if we were to accelerate mitigation efforts. Surveys show that many Irish companies are concerned about the physical manifestations of climate change.14But they themselves acknowledge they have not sufficiently invested in efforts to adapt to a changing climate. Adaptation investment needs to increase, globally and in Ireland. Here too, the evidence suggests that early action is likely to be most effective in minimising long-run economic costs.15The costs of inaction outweighing the costs of action is a recurring theme, including in the context of adaptation.The Central Bank recently partnered with the Climate Change Advisory Council to understand the barriers to greater investment in adaptation in Ireland. That work also considered a range of concrete actions that could increase adaptation investment, including strengthening awareness of local and sector-specific risks and improving estimates of the costs of adaptation nationally.Management of climate-related risks by the financial sector has improved, but there is more to doPrecisely because of the macrofinancial effects of climate change I have described above, climate change also entails risks for the financial system.In that context, a key supervisory priority of the Central Bank in recent years has been to strengthen the financial sector’s capabilities to manage climate-related financial risks.And, over the past few years, we have seen meaningful progress in this area. For example, we have seen improvements in governance around climate change and sustainable finance, in the approach to monitoring of climate-related risks, and in the deployment of scenario and stress testing analysis by regulated financial institutions. That said, there is still more work to do to ensure that climate-related risks are integrated fully in risk management practices across the financial system.  For example, we still see inconsistencies across firms and sectors, data continues to be a challenge, and risk management practices are not applied consistently across all relevant portfolios and exposures. So the effective management of climate-related financial risks across the financial system remains one of our key supervisory priorities, as outlined in our Supervisory and Risk Outlook report earlier this year. 16We also recognise that climate change is a shared challenge and that collaboration can be a key enabler if we are to succeed collectively. In that context, the Central Bank’s Climate Risk and Sustainable Finance Forum has provided a platform for stakeholders to work together to drive meaningful progress. In recent years, for example, the Forum has helped bring together stakeholders from a range of sectors to share perspectives on best practices for the management of climate-related financial risks as well as on capacity building within regulated firms.17More recently, the Forum has established a working group focusing on data and disclosures, a common challenge facing regulated firms across the financial system. The Central Bank is ‘staying the course’Let me conclude with some reflections on the Central Bank’s own journey around climate change.I hope it is clear from the above why we have been increasingly focused on climate change in recent years. Ultimately, it is because climate change poses risks to the economy and the financial system. And because the financial system has a key role to play in financing the transition to net zero. So, understanding the macrofinancial effects of climate change and the transition to net zero is essential to allow us to take the appropriate actions needed to deliver our mandate.Whether that is maintaining price and financial stability, providing economic policy advice to the Government, safeguarding the safety and soundness of individual firms, or protecting the interests of investors, including from the risk of greenwashing. I am very conscious that shifting policy priorities globally are leading to a weakening of commitments to climate change mitigation in some parts of the world. Sometimes I get asked whether that shifting geopolitical environment means we are reducing our own focus on climate change. The simple answer to that is no. We are staying the course.Our focus is – and has always been – on delivering our mandate, and we have been approaching climate change through that lens. If anything, further delays in climate change mitigation would mean that the macrofinancial risks from climate change would become more pressing. Thank you for listening. [1] I am very grateful to James Carroll, Patrick Haran, Niall McInerney and Rory McElligott for their advice in preparing these remarks. [2] Stern (2006) ‘The Economics of Climate Change’[3] See ‘Message to Parties and Observers’, United Nations Climate Change Secretariat, 10 November 2025[4] Dr. Jane Goodall’s 2025 Earth Day Message.[5] ‘Emission Gap Report 2025’, United Nations Environment Programme, November 2025.[6] ‘Ireland’s Provisional Greenhouse Gas Emission’, Environmental Protection Agency, July 2025.[7] ‘Cross-sectoral Review: Annual Review 2025’, Climate Change Advisory Council, November 2025.[8] NGFS Scenarios Portal https://www.ngfs.net/ngfs-scenarios-portal.[9] See Conefrey et al (2024), ‘Fiscal Priorities in the Short and Medium Term’, Central Bank of Ireland, Quarterly Bulletin, 2024 Q2.[10] See, McInerney and Fitzerland (2024) ‘Assessing the macroeconomic impact of carbon budgets’[11] See Ahangarkolaee et al (2025) ‘Measuring flood risk in business lending’, Behind the Data, [12] See Central Bank of Ireland (2024) ‘The flood protection gap’[13] For Irish evidence and the housing market, see Gillespie et at (2025) ‘Estimating the flood risk premium: evidence from a once-off informational shock’, Environmental and Resource Economics, Vol. 88. For UK evidence, see Skouralis et al (2024) ‘Does flood risk affect property prices? Evidence from a property-level flood score’, Journal of Housing Economics, Vol. 66.[14] See Disch and McElligott (2025) ‘Beliefs and barriers: Climate change and Irish firms’ access to finance’, Central Bank of Ireland Behind the Data, [15] See the joint report by the Climate Change Advisory Council and the Central Bank of Ireland on ‘Funding climate adaptation in Ireland’, [16] See Central Bank of Ireland (2025), ‘Regulatory and Supervisory Outlook[17] The Risk Management Working Group report and the Capacity Building Working Group report 

Good morning, welcome to Dublin, and welcome to our 4th Financial System Conference.Last month, at the IMF Annual Meeting and the G20 gathering of Finance Ministers and Central Bank Governors, the mood was clear: we are navigating a world that is more fragmented and more contested than at any point in recent decades, presenting clear challenges to the highly interconnected global economy and financial system.  Amidst those challenges, we’ve seen resilience, but beneath the surface lie familiar vulnerabilities – stretched valuations, rising sovereign debt burdens, and an increasingly important non-bank financial sector – all interacting with rapid advances in technology.In the context of such a world, I firmly believe the work of central banks and regulators matters now more than ever, delivering on our important mission of maintaining monetary and financial stability, while ensuring the financial system is operating in the best interests of consumers and the wider economy.Effective and efficient regulation and supervision are among the most important contributions we can make to stability, to resilience, and to confidence in the financial system, ensuring that consumers and investors are protected and that they have trust in a sector that plays such an important role in their daily lives.When I joined the Central Bank six years ago, we were on the cusp of this rapidly uncertain, challenging and changing world.  I spoke then about the importance of building a stronger institution, one that was more forward-looking, more connected to those it serves, and confident in its purpose. We set out to transform the Central Bank, not only in what we do, but in how we think, how we engage, and how we make decisions.  Over that time, we have sought to operate more effectively, to engage with stakeholders more regularly, and to regulate with a focus on delivering for the people of Ireland, Europe, and around the world, given the global nature of the Irish financial services sector.That commitment was captured in our 2021 strategy. It was built around the goals of being more future-focused, more open and engaged, and transformational in the way we deliver our key safeguarding functions.  It was about delivering better outcomes.The years that followed have tested every institution in Ireland, the EU and around the world.  Yet through challenge and change, through the shifts and the shocks – whether from technology, geopolitics, economic fragmentation, or the changing nature of society and the financial system – the Central Bank has continued to evolve.We have strengthened our frameworks, improved transparency, and made meaningful progress in how we engage with firms, the public, and our European partners.And, as I will outline today, we will continue to do so, continuing to strengthen and continuing to evolve.The experience of the past few years has reinforced my view that a strong regulatory system does not depend on the number of rules, but on the quality of those rules, the effectiveness of their application, and the confidence they inspire.At our inaugural Financial System Conference, three years ago, I outlined the Central Bank of Ireland’s regulatory philosophy.  In my remarks, I set out what we expect of ourselves and of the firms we supervise.  It was not a treatise about rules but a speech about behaviour, culture, and intent.Our regulatory philosophy is built on six principles:First, we are forward-looking in identifying risks;Second, we are connected to those we serve;Third, we are proportionate in balancing costs and benefits;Fourth, we are predictable in our expectations;Fifth, we are transparent in our explanations; andSixth, we are agile in adapting to changing environments.That philosophy remains our compass.  These principles guide how we work, how we regulate, and, importantly, how we renew.  They ensure that our frameworks remain effective, proportionate, and trusted even as the financial system, the regulatory system and the global order continues to evolve.This year the world of financial regulation has been buzzing with phrases such as deregulation, de-supervision, modernisation and simplification.  My preference is on continuing to focus on being forward-looking, connected, proportionate, predictable, transparent and agile, or, to put it another way, regulating and supervising well.The challenge ahead is to apply our principles with discipline.This will require the same openness and engagement we have tried to build over recent years, and the same agility that defines our philosophy.For me, regulating well is not about loosening standards or dismantling the architecture that protects consumers and ensures financial stability.  It is about making sure that what we do is clear, consistent, and coherent, so that rules are understood, applied predictably, and achieve their purpose without unnecessary burden or complexity.To be clear: our mandate has not changed. The outcomes we seek have not changed. But in line with our strategy, in keeping with our philosophy, and in response to a changing world, we are changing so we can continue to deliver on our mandate and our outcomes into the future. This was why one of our strategic goals in 2021 was to transform how we regulate and supervise to be more effective and more efficient while continuing to deliver the proportionality, predictability and transparency we are committed to.So, what are we doing? And how will we continue to evolve? Regulating well: The Next EvolutionOver recent years, we have streamlined and, as a result, strengthened our supervision, authorisation, and engagement processes.We have introduced a more efficient and effective supervisory approach, which remains, risk-based and outcomes focussed but is – importantly – more integrated across all our safeguarding outcomes, namely financial stability, consumer and investor protection, safety and soundness and the integrity of the system.  Integration means firms and sectors hear one voice from us as well as more streamlined engagement and demands.We have improved our external-facing processes including authorisations making them more transparent, more consistent, and more predictable. And we have heard positive feedback from firms going through the gate in terms of clarity and responsiveness as well as quicker turnaround times, which we do, importantly, without compromising on our robust standards. This is also reflected in better engagement and clarity in terms of our Fitness and Probity assessments.Building on this work, we are going to continue to make authorisations more effective and efficient, including by further centralising these ‘gatekeeping’ functions. This should bring further consistency, further transparency and further effectiveness to what is an integral part of our regulatory framework.The outcomes we achieved in our first Sandbox Programme represent a new model for innovation engagement, where collaboration accelerates safe innovation. The results we have seen validate our conviction that effective regulation requires open engagement with the innovation ecosystem, and when that ecosystem works together with a clear purpose, meaningful progress follows.The way we make policy has also evolved.The mortgage measures are a good example of regulation that learns in practice. Introduced in 2015, and evaluated annually, we reviewed them comprehensively in 2022 and decided to make some changes following an assessment that the balance of the benefits and costs had changed since they were first introduced.  This shows how we evaluate and refine frameworks over time, drawing on data, evidence, and experience to maintain both resilience and access to sustainable lending.Each initiative applies a test: is this necessary, proportionate, and effective?We want to continue to evolve, and we will do so building on this same foundation. While we have been focused on improving regulation and supervision, we certainly haven’t done so in a vacuum.  As part of our efforts to be more connected, we have been listening to you. Thank you for your submissions. While we probably won’t agree on every point, I am heartened that our strategic aims of making the framework more straightforward without compromising on resilience and protections appear aligned.And we haven’t just listened, we have heard, and we are responding.First, much of financial services policy, legislation and regulation comes from Europe.  Therefore, at a European level, we are working actively with colleagues in other authorities on what is a wide-ranging agenda. I am confident it will result in tangible changes.But our work does not stop in Europe.High-quality regulation depends on coherence between domestic and European frameworks.  As the European Union refines its single-market rulebook, Ireland’s domestic requirements must evolve in step, ensuring that rules remain effective, proportionate, and complementary.  In a highly digitalised and global marketplace, it also depends on clear, effective standards at the global level, which is why the Central Bank of Ireland will continue to be an active participant in international standard-setting across the full breadth of our mandate.Across sectors, we are reviewing frameworks to ensure alignment with evolving EU law, coherence across domestic regimes, and proportionality in application.  This includes work on funds, insurance, banking, governance, outsourcing, AML, and data reporting, all guided by our aim to make regulation clearer, easier to navigate and more straightforward, without weakening the protections it provides to consumers and investors or standards of prudence.Let me give some examples.In the insurance sector, the forthcoming reform of Solvency II provides an opportunity to recalibrate Ireland’s insurance rulebook. The Bank will conduct a compatibility review of more than 50 domestic instruments to identify overlap, underlap, and opportunities for consolidation.The establishment of the EU Anti-Money Laundering Authority and the directly applicable EU AML Regulation will replace a significant portion of Ireland’s existing national AML framework. To ensure consistency, the Bank will retire or revise domestic guidance, including the 2021 sectoral guidelines, once the EU Regulation enters into force.As we have brought in new regulations domestically, we are also reviewing our existing ones.The introduction of the Individual Accountability Framework (IAF) and Senior Executive Accountability Regime (SEAR) are allowing us to review the Pre-Approval Controlled Function (PCF) framework to reduce administrative load while maintaining clarity of responsibility.  Today we are publishing finalised proposals making it simpler to appoint people to PCF roles on a temporary basis where needed and to consolidate our guidance to make it easier to follow.  And as we had committed to, we will be conducting our review of SEAR in 2027.  We are going to review the corporate governance requirements in 2026 to remove duplication, improve alignment across sectors, and embed proportionality and clarity into governance design.These are just some examples of what we are doing.  In the coming weeks, we will communicate a list of our ongoing initiatives, a concise summary of the programmes we are delivering domestically.  It will provide additional details on how each initiative will make our domestic regulatory framework more straightforward.And while the individual projects may matter to some of you, what matters to me most is the discipline behind them: to review what we have built, to align with best practice while meeting domestic needs, and to ensure that rules continue to serve their purpose, while we remain focused on doing our job.At its heart, regulating well is about mindset; creating the conditions where people inside and outside the Bank can engage openly, question intelligently, and contribute constructively. That discipline, the discipline of continuous learning, is what turns good intentions into better outcomes.Trade-offs and the discipline of good policy-makingModern, high-quality regulation also requires humility. Every decision involves trade-offs: between simplicity and precision, between flexibility and certainty, between speed and due process.We must be honest about those choices.A financial system as large and interconnected as Ireland’s cannot be governed through one-page rules.There will always be complexity as the sectors that we regulate can be complex, and the rules must be sufficient to manage that risk.  Firms could certainly help themselves and their customers if they were more straightforward in the design, delivery and explanation of their products and services.  But if complexity must exist, it must at the very least be purposeful. When detail adds resilience, clarity, or fairness, it is justified.  When it merely adds friction or confusion, it is not.That is the essence of good policymaking, one which applies equally when we make new regulations or when we improve existing frameworks.  Perfection is not the goal. The financial system is dynamic and regulation must evolve with it.  I accept that simple deregulation might deliver some benefits to some people but I prefer better and more efficient regulation that delivers positive outcomes to most people.But I want to be crystal clear.  You would be wrong to confuse our efforts to make better policy and to improve our processes with a weakening of our approach to regulation and supervision.  The standards we expect of regulated firms won’t be lowered. We will not dial back our supervision.  We will continue to take enforcement action where necessary.  And if changes to the risk landscape mean we have to introduce new rules or requirements, we will do so.But we are committed to being more effective and efficient, removing unnecessary complexity and burdens, while maintaining the resilience and protections necessary for us to deliver on our mandate.  Being straightforward in our actions and explanations will be a watchword for us.The road aheadWhile we will set out some initiatives in the coming weeks, this is a journey, not an event. We will consult on a new Regulatory Impact Assessment Framework next year, which will further embed evidence-based policymaking into our processes and support us to ensure the orderly and proper functioning of financial markets.And we will continue to engage actively with others on how to streamline the European rulebook in a way that strengthens, rather than fragments, the Single Market.But as I said, a commitment to regulating well and being more straightforward does not mean a commitment to no new regulation; rather, it means ensuring that each new measure is well-designed, well-justified, and well-understood.This will make us better at what we do: identifying risks, allocating resources, and explaining our choices.ConclusionOur preference for simplicity cannot be blind to the complexity that defines modern life.The financial system does not stand apart from society; it reflects it.And the complexity we have to manage reflects the complexity of our societies: interconnected, fast-moving, technology-driven, and global.Our task is to manage that complexity responsibly, not by seeking to make everything simple, but by ensuring that what we do is proportionate and understandable.That is what regulating well and supervising well ultimately mean for me: ensuring clarity of purpose, coherence of process, and consistency of principle. As the financial system continues to evolve, through digitalisation, artificial intelligence, and new forms of intermediation, the need for clear, trusted, and agile regulation will only grow.  The Central Bank’s role is to anticipate these changes, to respond to them with purpose, and to ensure that Ireland’s financial system remains resilient, and delivers in the best interest of our citizens and economy. Robust, efficient and effective regulation and supervision is not a luxury; it is a necessity and one of the most important ways we can contribute to resilience at home and confidence abroad.When we regulate well, we strengthen the foundations of confidence: firms can understand the rules; consumers can trust the system and exercise their rights effectively within it; and society can see that regulation is working in its interest.If we keep faith with that approach – if we continue to challenge ourselves, to be humble about the value of learning continuously, and to evolve our frameworks in a disciplined way – then I am confident that the financial system will continue to work well, whatever the external environment throws at us.I started my remarks today by reminding us of the six principles we apply to our work. Let me finish by also reminding us of the helpful clarity provided by our founding legislation, and which guides us in our work: that the constant and predominant aim of the Central Bank of Ireland shall be the welfare of the people as a whole.I hope you enjoy the conference.

The Central Bank of Ireland today (25 November) hosts its fourth annual Financial System Conference. The conference brings together domestic and international industry leaders, consumer representatives and policymakers to discuss key issues impacting the financial system. Speaking at the conference, Governor Gabriel Makhlouf said the work of central banks and regulators matters now more than ever in a changing, fragmented world, to deliver monetary and financial stability and ensure the financial system continues to operate in the best interests of consumers and the wider economy. He said: “Effective and efficient regulation and supervision are among the most important contributors we can make to stability, resilience and confidence in the financial system. The experience of the past years has reinforced my view that a strong regulatory system does not depend on the number of rules, but on the quality of those rules, the fairness of their application, and the confidence they inspire.“This year, the world of financial regulation has been buzzing with phrases such as deregulation, de-supervision, modernisation and simplification. My preference is continuing to focus on being forward-looking, connected, proportionate, predictable, transparent and agile, or, to put it another way, regulating and supervising well.“Regulating well is not about loosening standards or dismantling the architecture that protects consumers and ensures financial stability. It is about making sure that what we do is clear, consistent and coherent, so that rules are understood, applied predictably, and achieve their purpose without unnecessary burden or complexity.”On the next phase of the Central Bank’s evolution, Governor Makhlouf said, “Over recent years, we have streamlined and strengthened our supervision, authorisation and engagement processes. We have introduced a new supervisory approach which remains risk-based and outcomes focused but is more integrated across the Bank.“We have improved our external-facing processes including authorisations, making them more transparent, consistent and predictable. The outcomes we have achieved in our first Innovation Sandbox programme also represent a new model for innovation engagement, where collaboration with industry accelerates safe innovation.“The way we make policy has evolved. The mortgage measures are a good example of regulation that learns in practice and shows how we evaluate and refine frameworks over time, drawing on data, evidence and experience to maintain both resilience and access to sustainable lending.Governor Makhlouf acknowledged the work the Central Bank is doing at a European level, noting that high quality regulation depends on coherence between domestic and European frameworks. He said, “We are reviewing frameworks to ensure alignment with evolving EU law, coherence across domestic regimes, and proportionality in application.  We expect, for instance, that our existing anti-money laundering framework will mostly be replaced by new EU Regulations.  “As we have brought in new regulations domestically, we are also reviewing our existing ones. For example, we are going to review the corporate governance requirements in 2026 to remove duplication, improve alignment across sectors, and embed proportionality and clarity into governance design.”Governor Makhlouf said, “What matters to me most is the discipline behind these projects: to review what we have built, to align with best practice while meeting domestic needs, and to ensure that rules continue to serve their purpose, while we remain focused on doing our job.” Governor Makhlouf made it clear that there should be no confusion of efforts to make better policy and improve processes with a weakening of the Bank’s approach to regulation and supervision. “The standards we expect of regulated firms won’t be lowered. We will not dial back our supervision. We will continue to take enforcement action where necessary. And if changes to the risk landscape mean we have to introduce new rules or requirements, we will do so.”Over the coming weeks, the Central Bank will publish a list of ongoing initiatives to make the domestic regulatory framework more straightforward, including consulting on a new Regulatory Impact Assessment Framework next year. The Central Bank will also continue to actively engage with others on how to streamline the European rulebook to strengthen the Single Market.Governor Makhlouf said, “A commitment to regulating well and being more straightforward does not mean a commitment to no new regulation; rather it means ensuring that each new measure is well-designed, well-justified, and well-understood. Regulating well and supervising well ultimately means ensuring clarity of purpose, coherence of process and consistency of principle.“Robust, efficient and effective regulation and supervision is not a luxury; it is a necessity and one of the most important ways we can contribute to resilience at home and confidence abroad. If we continue to challenge ourselves, be humble about the value of learning continuously, and evolve our frameworks in a disciplined way, then I am confident that the financial system will continue to work well, whatever the external environment throws at us.”ENDSFurther information:kelly.horn@centralbank.iemedia@centralbank.ie  Notes to EditorsRead the Governor’s full opening remarks

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