Ireland: COVID-19 From The Perspective Of A Regulated Financial Service Provider

Central Bank Communications to date on Covid-19

On 4 March 2020, the Central Bank of Ireland ("Central Bank") issued this communication on COVID-19. It gives two clear messages:

(1) That the Central Bank "expect[s] regulated firms to have appropriate contingency plans in place to be able to deal with major operational events"; and

(2) That the Central Bank is "working with the financial sector to ensure that firms are responding effectively to the evolving situation."

On 13 March, The Governor of the Central Bank ("Governor Makhlouf") explained that "Our focus is on ensuring monetary and financial stability and that the financial system operates in the best interests of consumers and the wider economy. We are engaged with the financial sector to ensure that firms are responding effectively to the evolving situation."

On 18 March, the Central Bank released a further statement indicating that it had decided "to release a capital buffer that banks are required to hold in order to support the continued provision of credit to households and businesses, by the banking system, during this challenging time. This buffer, the Counter Cyclical Capital Buffer (CCyB), is a time-varying capital requirement and will be reduced from 1% to 0% no later than 2 April 2020".

On 20 March 2020, the Central Bank issued an updated statement on the COVID-19 pandemic. The Central Bank met with the Banking & Payments Federation Ireland (BPFI) and five retail banks. The Central Bank and the BPFI agreed that there is no impediment to the banks introducing a 3-month Covid-19 payment break for those affected by the pandemic. Additionally, Governor Makhlouf re-emphasised the need to protect consumers "particularly those who may experience financial difficulties at this time".

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Originally published 20 March 2020

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