Central Bank of Ireland Publishes Systemic Risk Pack in March 2019
Central Bank of Ireland published the Systemic Risk Pack, which presents the bank's approach, including indicators and visualization methods, for monitoring systemic risk in the Irish financial system. The systemic risk pack includes a set of summary heatmaps and a selection of noteworthy or topical charts for consideration. While the heatmaps provide a useful overview of the systemic risk landscape, they are also a very simple risk assessment tool. For example, they do not take into account dynamics in the broader financial system or real economy which will determine whether or not an indicator’s level can be considered excessive or unstable.
In the systemic risk pack, explanation of indicators used is provided for each section in the form of a glossary and metadata table. The heatmaps aim to distill information and highlight areas of elevated risk by color coding indicators in line with their deviation from levels associated with financial system stability (thresholds). The indicators presented in the systemic risk pack are drawn from the broad range of data available to the Central Bank of Ireland. These include publicly available data as well as commercially sourced data supplied by third parties and data reported by regulated entities. The approach that has been taken to develop the risk pack makes it a very flexible tool and will allow for it to evolve over time, as new data sources become available, other relevant indicators are identified, and approaches to data visualization evolve.
This publication builds on the existing work regarding the use of macro-prudential indicators in policy setting. This biannual publication is created to facilitate macro-prudential analysis and to focus policy maker discussion. It complements the existing financial stability analysis by providing a comprehensive systemic perspective, along with the detailed approach provided in other publications.
Related Link: Systemic Risk Pack (PDF)
Keywords: Europe, Ireland, Banking, Systemic Risk, Macro-Prudential Policy, Financial Stability, Risk Assessment Tool, Central Bank of Ireland
Featured Experts

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Dr. Samuel W. Malone
Sam leads the quantitative research team within the CreditEdge™ research group. In this role, he develops novel risk and forecasting solutions for financial institutions while providing thought leadership on related trends in global financial markets.
Previous Article
FCA Publishes Findings from Consumer Research on Crypto-AssetsRelated Articles
News
APRA Publishes Proposal to Increase Transparency of Banking DataAPRA proposed to substantially increase the volume and breadth of data it makes publicly available on authorized deposit-taking institutions, including banks, credit unions, and building societies.
December 05, 2019
WebPage
Regulatory News
|
News
EC Amends Rule on Mapping of External Credit Assessment InstitutionsEC published the implementing regulation (EU) 2019/2028, which amends Regulation 2016/1799, regarding the mapping tables specifying correspondence between the credit risk assessments of external credit assessment institutions (ECAIs) and the credit quality steps set out in the Capital Requirements Regulation.
December 04, 2019
WebPage
Regulatory News
|
News
EBA Issues Second Part of Advice on Implementation of Basel III in EUEBA published the second part of its advice on the implementation of Basel III in EU, which complements the report published on August 05, 2019.
December 04, 2019
WebPage
Regulatory News
|
News
EU Approves European Council Proposal on CCP Recovery and ResolutionEU ambassadors approved the position of European Council on a proposed framework for clearing houses and their authorities to prepare for and deal with financial difficulties.
December 04, 2019
WebPage
Regulatory News
|
News
EIOPA Consults on Approach for Regulating Key Aspects of PEPPEIOPA launched a consultation on the proposed approaches and considerations for its technical advice and its implementing and regulatory technical standards, as mandated by the Pan-European Personal Pension Product (PEPP) Regulation.
December 02, 2019
WebPage
Regulatory News
|
News
ESMA Issues Guidance for Registration of Securitization RepositoriesESMA published a guidance note on the process for registering securitization repositories under the Securitization Regulation.
December 02, 2019
WebPage
Regulatory News
|
News
European Council Appoints New Commission With Effect from December 01European Council appointed the new Commission for the period from December 01, 2019 to October 31, 2024.
December 02, 2019
WebPage
Regulatory News
|
News
BoE Governor Appointed as UN Envoy for Climate Action and FinanceBoE Governor Mark Carney has been appointed as the United Nations (UN) Special Envoy for Climate Action and Finance.
December 01, 2019
WebPage
Regulatory News
|
News
PRA Publishes Annual List of G-SIIs and O-SIIsPRA released the annual list of UK firms designated as other systemically important institutions (O-SIIs), along with the 2019 list of UK-headquartered global systemically important institutions (G-SIIs).
November 29, 2019
WebPage
Regulatory News
|
News
EBA Publishes Report on Risks and Vulnerabilities in EU Banking SectorEBA published its annual report on risks and vulnerabilities in the EU banking sector.
November 29, 2019
WebPage
Regulatory News
|