Strengthening Ireland's economic resilience and financial stability
The Central Bank of Ireland (CBI) published its latest Regulatory & Supervisory Outlook and first quarterly Access to Cash report this week, emphasizing its commitment to strengthening resilience, safeguarding stability, and supporting the public interest amidst evolving economic and financial conditions.
Ireland's Path to Enduring Economic Strength
The Central Bank of Ireland (CBI) has outlined its perspective on the macro-financial landscape and the actions required to bolster economic resilience, as detailed in a recent letter to the Tánaiste and Minister for Finance.
Global geopolitical tensions and rapid technological advancements necessitate strategic adaptation over the medium and long term.
While the Irish economy has demonstrated notable adaptability in recent years, sustained resilience demands more than a strong starting point; it requires proactive attention to structural weaknesses and the cultivation of enduring economic strength.
The CBI's priorities include growing supply-side capacity through essential infrastructure, strengthening the indigenous business sector to diversify the economy, building fiscal buffers with prudent expenditure control, and supporting household resilience by enhancing financial market participation and reducing barriers to financing.
These interconnected policy areas are crucial for expanding resilience from economic fundamentals to the institutions and frameworks supporting a dynamic yet stable economy.
Safeguarding Access to Physical Currency
The Central Bank of Ireland's (CBI) inaugural quarterly Access to Cash report emphasizes maintaining cash availability and accessibility.
Despite evolving payment habits, the CBI ensures infrastructure changes meet societal needs, especially for those without digital alternatives.
Data shows Ireland's cash infrastructure, as of last year, comprised over 4,000 ATMs and 1,200 cash service points.
Minor shortfalls against official criteria have been identified and communicated to banks for resolution.
This work is part of the CBI's broader public engagement on implementing access-to-cash provisions, contributing to a resilient financial system.
Anchoring Stability Through Earned Trust
Central bank independence, often misunderstood as a shield, truly serves as a vital anchor for long-term economic stability.
Its continuous earning through credibility, competence, and transparent engagement is paramount for public trust.
This institutional commitment ensures policy decisions prioritize the broader economic welfare, making it an indispensable framework in a rapidly changing financial landscape.