McMunn: Strong local firms crucial for global stability
Deputy Governor Mary-Elizabeth McMunn of the Central Bank of Ireland emphasized the critical role of well-governed local firms in maintaining global financial stability. Speaking on June 16, 2026, she outlined the Central Bank's regulatory approach amidst increasing fragmentation and technological change.
Global significance, local responsibility
Deputy Governor McMunn highlighted the dual challenges of financial fragmentation and rapid technological transformation facing international financial services.
She stressed that global significance demands global responsibilities, with the Central Bank of Ireland (CBI) committed to contributing to global financial stability.
This involves continued international engagement, adherence to global standards, and robust supervisory cooperation.
McMunn urged firms to think through the regulatory and political cycle, advocating for convergence and applying the highest international standards rather than the lowest local ones.
She noted the CBI's expectation for Irish-based subsidiaries of global groups to be resilient, financially and operationally, with substantive and sufficiently independent local governance.
Leveraging group resources should not compromise local board independence or create unmanaged conflicts of interest, ensuring firms fulfill their regulatory obligations and duties to customers.
Minding the gate, simplifying the path
McMunn detailed the Central Bank of Ireland's commitment to 'Regulating and Supervising well,' an approach that is robust, effective, and efficient.
She outlined the revised integrated supervisory approach, introduced in January 2025, building on risk-based supervision and incorporating European and international responsibilities.
A key aspect is gatekeeping, ensuring firms, individuals, and products meet required standards to safeguard financial stability, firm soundness, consumer protection, and system integrity.
The CBI's approach to authorizations is risk-based, proportionate, and outcomes-focused, prioritizing high standards over speed.
McMunn also highlighted the simplification agenda, centralizing gatekeeping functions and investing in technology like automation and AI to enhance efficiency and transparency.
Local strength in a fragmented world
McMunn's speech highlights a crucial tension: as global financial services fragment, robust local governance becomes paramount.
Her emphasis on high international standards over local minimums is a clear signal, demanding genuine autonomy and accountability from subsidiaries.
This forward-looking stance positions the Central Bank of Ireland as a proactive supervisor, navigating global shifts with a clear focus on stability and consumer protection.