The Role of the Central Bank of Ireland as an Independent Financial Regulator

The chapter evaluates the extent to which the Central Bank of Ireland (CBI) operates as an independent and accountable supervisor. The CBI was established pursuant to the Central Bank Reform Act 2010 as the body responsible for central banking and financial regulation in Ireland. The chapter explains the CBI’s functions and describes the national and EU regulatory landscape within which it operates. It compares the CBI to its predecessor, the Central Bank of Ireland and Financial Services Authority, which was criticized for perceived regulatory and supervisory failures in the lead up to the Irish Banking Crisis in 2008. In doing so, it identifies significant improvements in terms of the CBI’s independence, transparency, and accountability. The chapter also suggests further changes that might be considered in this context.