Influencing the EU and International Regulatory Framework
To a large extent the policy framework for the financial sector is agreed internationally, both within the European Union and at a global level. The Central Bank engages to influence these decisions at every level.
Read our response to the European Commission's public consultation on the operations of the European Supervisory Authorities (ESA):
Response to European Commission Consultation on ESAs | pdf 445 KB
Read the European Commission's public consultation on the operations of the ESAs on their website.
In the EU, there are a number of institutions/authorities that agree regulatory policy in Europe.
The European System of Financial Supervision is composed, at the micro-prudential level, of
- the ESAs:
- the Joint Committee of the ESAs; and
- the competent national supervisory authorities, of which the Central Bank of Ireland is one.
The ESAs are sectorally focused; the European Banking Authority (EBA), European Insurance and Occupational Pensions Authority (EIOPA), and European Securities and Markets Authority (ESMA) develop the technical Standards, Guidelines and Recommendations which give effect to EU micro-prudential and conduct financial services legislation.
The Central Bank is an active member of the ESAs. Its contribution to the work of the ESAs has helped achieve high quality regulation which reflects the Irish perspective and contributes to the enhancement of Ireland’s reputation and regulatory framework.
Here is some more detail about each of these European bodies and our engagement with them:
The EBA is an independent EU authority which works to ensure effective and consistent prudential regulation and supervision across the European banking sector. Its overall objectives are to maintain financial stability in the EU and to safeguard the integrity, efficiency and orderly functioning of the banking sector.
Director of Financial Regulation, Policy and Risk, Gerry Cross represents the Central Bank on the EBA’s Board of Supervisors — the main decision making body of the EBA. The Central Bank also engages with over 40 sub-bodies (sub-committees, taskforces, working groups and networks) set up under the EBA to examine particular areas and components of legislation relating to the banking sector.
EIOPA
EIOPA is an independent advisory authority to the EU tasked with ensuring the financial stability of the market for institutional and occupational pensions. EIOPA’s objectives include ensuring transparency, simplicity, accessibility and fairness across the internal market for consumers; leading the development of sound and prudent regulations supporting the EU internal market; and improving the quality, efficiency and consistency of the supervision of EU insurers and occupational pensions. EIOPA has its headquarters in Frankfurt.
Director of Insurance Supervision, Domhnall Cullinan represents the Central Bank on EIOPA’s Board of Supervisors. The Central Bank also engages with almost 25 sub-bodies set up by EIOPA.
The macro-prudential pillar of the European System of Financial Supervision is the European Systemic Risk Board.
ESMA
ESMA is an independent EU authority that contributes to safeguarding the stability of the European Union's financial system by enhancing the protection of investors and promoting stable and orderly financial markets. ESMA is located in the 7th arrondissement in Paris.
Director General, Financial Conduct, Derville Rowland represents the Bank on ESMA’s Board of Supervisors. The Central Bank engages with almost 30 sub-bodies set up under ESMA to examine and develop standards and guidance in relevant areas relating to ESMA’s work.
ESRB
The ESRB is responsible for the macroprudential oversight of the EU financial system and the prevention and mitigation of systemic risk. The ESRB has a broad remit, covering banks, insurers, asset managers, shadow banks, financial market infrastructures and other financial institutions and markets. In pursuit of its macroprudential mandate, the ESRB monitors and assesses systemic risks and, where appropriate, issues warnings and recommendations.
The General Board is the ESRB’s primary decision-maker and on which the Central Bank is represented by the Governor. The Central Bank is also represented on 18 sub-bodies set up under to facilitate the work of the ESRB.
EU Institutions
Council of the EU
In terms of direct engagement, the Central Bank participates in working groups of the Council of the EU on matters of relevance when requested by Government Departments. The Central Bank also engages with the EU institutions by regularly responding to EU public consultations and engaging with MEPs and Ministers attending EU meetings.
ECB
The Governing Council is the main decision-making body of the ECB. It consists of the six members of the ECB’s Executive Board and the governors of the national central banks of the Eurozone, which includes the Governor of the Central Bank of Ireland. Further information on the voting rights in the Governing Council, which are held on a rotating basis, is available here.
The ECB, in cooperation with the national supervisors, is responsible for ensuring the effective and consistent functioning of European banking supervision within the Single Supervisory Mechanism.
Deputy Governor, Prudential Regulation, Ed Sibley is the Central Bank’s representative on the ECB’s Supervisory Board, which meets twice a month to discuss, plan and carry out the ECB’s supervisory tasks. Ed Sibley is also one of the five national authorities’ representatives on the Steering Committee to support the activities of the Supervisory Board.
The Central Bank participates in several SSM working groups and 18 ECB working groups. Further details on the role of the Central Bank within the Eurosystem are provided here.
International Organisations
At a global level, the Central bank is actively involved with international organisations and places great importance in being an influential and persuasive participant in international policy debates. Further details on a number of these international organisations and our engagement with them is provided below.
Financial Action Task Force
The Financial Action Task Force (FATF) is an inter-governmental body with the objectives of setting standards and promoting effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
The Central Bank is a member of the Irish delegation to the FATF. Central Bank staff provide technical assistance on relevant supervisory policy issues and also attend relevant working group meetings and plenary sessions three times a year.
International Financial Consumer Protection Organisation (FinCoNet)
FinCoNet is an international organisation of supervisory authorities which have responsibility for financial consumer protection, and of which the Central Bank is a member. FinCoNet’s objectives are to promote sound market conduct and strong consumer protection, and strengthen consumer confidence through the promotion of efficient and effective financial market conduct supervisory practices and standards.
International Organisation of Securities Commissions (IOSCO)
IOSCO is the international body that brings together the world's securities regulators and is recognized as the global standard setter for the securities sector. IOSCO develops, implements and promotes adherence to internationally recognized standards for securities regulation. It works intensively with the G20 and the Financial Stability Board (FSB) on the global regulatory reform agenda.
The Central Bank is represented on 10 of IOSCO’s committees, working groups and subgroups. Martin Moloney, Head of Markets Policy Division, is also a Member of IOSCO’s Board, which is the governing and standard-setting body of the Organisation.