Deputy Governor of Financial Regulation, Cyril Roux, highlights importance of cross-border cooperation in the regulation of the non-bank financial sector

• Due to international links, cross-border cooperation in the area of non-bank finance is essential.
• Such non-bank finance can provide benefits to economy but risks must be monitored and mitigated.
• The Central Bank of Ireland will continue to play a leading role in the regulation of market-based finance.

Speaking at the Central Bank of Ireland conference on Non-Bank Financial Intermediation: Mapping, Risk Assessment and Supervision, Deputy Governor Cyril Roux outlined the importance of cross-border cooperation to understanding the actors, activities and interlinkages of market-based finance. Mr Roux noted that international links characterise the sector in Ireland. In this context, increased international cooperation and knowledge sharing among regulators is essential.

Mr Roux highlighted that the Central Bank is committed to cross-jurisdictional coordination and data sharing. The Central Bank, as a fully integrated central bank and regulatory body, is well placed to play a leading role in this regard. The Central Bank currently provides thought leadership to initiatives specifically related to systemic risk analysis for the non-bank sector and development of macro-prudential tools in Europe and internationally.

In addition, the conference focused on the opportunities and challenges in monitoring, analysing and supervising non-bank financial intermediation. It provided the Central Bank an opportunity to showcase its extensive work in this area. The conference also received presentations from a range of international and European institutions such as the Bank for International Settlements (BIS), Organisation for Economic Cooperation and Development (OECD), European Securities and Markets Authority (ESMA), European Systemic Risk Board (ESRB), the International Monetary Fund (IMF), the Bank of England, the European Commission and the AMF (French Financial Markets Regulator).