Central Bank of Ireland Sets Out Regulatory Priorities for 2022
The Central Bank of Ireland sets out a warning against investing in crypto-assets and outlines its work priorities on financial regulation.
The Central Bank sets out the regulatory priorities for 2022, along with its role in building resilience, anticipating risk, and protecting citizens. Below are some of the key planned activities under these priorities:
- Central Bank will continue to implement a forward-looking approach to the authorization of financial services firms, in line with European standards and norms.
- In the area of governance, Central Bank will continue to work with the Department of Finance on the introduction of the Individual Accountability Framework.
- Central Bank will review and make necessary revisions to the capital requirements framework for banks (CRR3/CRD6), revisions to the solvency framework for insurers (Solvency II review), and work on the review of the second Payment Services Directive (PSD2 review).
- Central Bank will work closely with European counterparts to help shape and implement the Anti-Money-Laundering and Countering Financing of Terrorism (AML/CFT) Package and the new single AML authority, which will mark a structural sea-change in the European approach to combatting the problem.
- Central Bank will strengthen the regulatory framework around crypto-assets to prevent fraud and real risk to investors.
- Central Bank will continue to step up work on climate change to both ensure the financial system can support the transition to a carbon-neutral economy and is suitably resilient to the risks.
In addition, the Central Bank of Ireland issued a warning on the risks of investing in crypto-assets, as part of a European-wide campaign by the European Supervisory Authorities. The Central Bank emphasized that crypto-assets are highly risky and speculative and may not be suitable for retail customers. People need to be alert to the risks of misleading advertisements, particularly on social media, where influencers are being paid to advertise crypto-assets. The Central Bank also published a plain English explainer for consumers on cryptocurrencies.
Related Links
- Press Release on Priorities for 2022
- Speech on Priorities for 2022
- Notice on Crypto-Assets
- Explainer For Cryptocurrencies
Keywords: Europe, Ireland, Banking, Insurance, Financial Regulation, Crypto-Assets, Cryptocurrencies, Governance, Solvency II, PSD 2, CRR 3, CRD 6, AML CFT, ML TF Risk, Climate Change Risk, Low-Carbon Economy, ESG, Central Bank of Ireland
Featured Experts
James Partridge
Credit analytics expert helping clients understand, develop, and implement credit models for origination, monitoring, and regulatory reporting.
Hasan Cerhozi
Hasan leads Moody’s Analytics ESG methodology development. He is expert on carbon transition, nature related risks and is a guest lecturer at ESSEC Business school on sustainable finance.
Michael Denton, PhD, PE
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
Previous Article
BIS Hub and Central Banks Collaborate on Multi-CBDC PlatformRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.