Tuesday 25 October 2016

Central Bank holds talks with firms on Brexit fallout

Published 15/07/2016 | 02:30

Central Bank Governor Philip Lane Picture: Jason Clarke
Central Bank Governor Philip Lane Picture: Jason Clarke

The Central Bank will publish revised economic forecasts later this month in the wake of the Brexit vote.

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Financial Regulator Cyril Roux and other officials held talks with financial sector representatives yesterday about the potential consequences for the sector, following the outcome of the referendum held in the UK on June 23. Mr Roux said the purpose of the engagement was to allow the sector to present their views on the impacts for the regulated financial sector.

"Prior to and since the referendum, the bank has been in close contact with the firms it supervises, as well as the Irish Government, ECB-SSM and other EU institutions, and continues to monitor carefully developments in the financial markets and on the regulated financial services providers," the Central Bank said in a statement.

Last month, Central Bank Governor Philip Lane said forecasts would be revised, and he warned of uncertainty for some time.

The Central Bank said the revised outlook would be published in the Quarterly Bulletin later in the month.

"The bank is confident that the contingency measures in place are appropriate to address any such issues that may arise in the short to medium term," the bank added.

Cyril Roux
Cyril Roux

"In respect of firms or funds potentially seeking to locate in Ireland, the Deputy Governor said the bank remains committed to providing a clear, open and transparent authorisation process while ensuring a rigorous assessment of the applicant against regulatory standards so as to continue to ensure a high, consistent level of consumer protection."

Prof Lane said the Central Bank had prepared for the possibility of a Brexit and that it would ­continue to closely monitor the risks to financial stability. Meanwhile, the chief economist at the Office for National Statistics in the UK, Joe Grice, said it is "aware" of the appetite among economists for concrete figures on Brexit effects.

"In the short term, we won't see figures fall off a cliff - it will be a longer-term impact," he said. The ONS has been meeting to determine which figures can reliably be used," Mr Grice said.

Irish Independent

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