Banking regulation—Ireland—Q&A guide

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Banking regulation—Ireland—Q&A guide
  • 1. What are the principal governmental and regulatory policies that govern the banking sector?
  • 2. What are the defining characteristics of a bank to be caught by the banking laws and regulations? Is non-bank fintech regulated differently?
  • 3. Do the rules vary depending on the size or complexity of the banking institution?
  • 4. Summarise the primary statutes and regulations that govern the banking industry.
  • 5. Which regulatory authorities are primarily responsible for overseeing banks?
  • 6. Describe the extent to which deposits are insured by the government. Describe the extent to which the government has taken an ownership interest in the banking sector and intends to maintain, increase or decrease that interest.
  • 7. Which legal and regulatory limitations apply to transactions between a bank and its affiliates? What constitutes an ‘affiliate’ for this purpose? Briefly describe the range of permissible and prohibited activities for financial institutions and whether there have been any changes to how those activities are classified.
  • 8. What are the principal regulatory challenges facing the banking industry?
  • 9. Are banks subject to consumer protection rules?
  • More...

Banking regulation—Ireland—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to banking regulation in Ireland published as part of the Lexology Getting the Deal Through series by Law Business Research (published: February 2021).

Authors: Dillon Eustace—Keith Robinson

1. What are the principal governmental and regulatory policies that govern the banking sector?

The government body with primary responsibility for regulating the Irish banking sector is the Central Bank of Ireland (CBI). The mission of the CBI is to safeguard monetary and financial stability and to work to ensure that the financial system operates in the best interests of consumers and the wider economy. The CBI's statutory objectives include:

  1. price stability;

  2. the stability of the overall financial system;

  3. the resolution of financial difficulties in banks and other regulated entities;

  4. the proper and effective regulation of financial service providers and markets (while ensuring consumer protection); and

  5. the efficient and effective operation of payment and settlement systems.

Following the introduction of the Single Supervisory Mechanism (SSM) on 4 November 2014, the European Central Bank (ECB) became the competent authority for supervising banks operating in Ireland. Where a bank is designated as 'significant', it is supervised directly by the ECB. Banks designated as 'less significant' are directly supervised by the CBI; however, the ECB has the power to issue guidelines or instructions to the CBI and to take over direct supervision of any

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