TITLE: Central Bank of Ireland Sets Out Regulatory and Supervisory Priorities for 2026
BODY:
On 26 February 2026, the Central Bank of Ireland published its Regulatory & Supervisory Outlook 2026, outlining its assessment of risks facing the financial sector and the supervisory work it will undertake in response. This is the third annual report of its kind.
The Central Bank's assessment identifies operational risks as remaining very high for the financial sector, driven by current geopolitical tensions, advancing digitalisation, and increasingly complex operating models. Relative to the previous year, asset valuation and market risks have increased, as have risks associated with data, models, and artificial intelligence (AI). Conversely, inflation and interest rate risks have abated for the financial sector, reflecting the evolution of inflation and monetary policy in the euro area and the preparedness of the sector itself.
The outlook is set against a backdrop of geoeconomic fragmentation and rapid technological developments reshaping the financial system. The Central Bank's regulatory and supervisory priorities respond to this risk environment through its integrated supervisory approach.
Governor Gabriel Makhlouf stated that operational and cyber risks remain key concerns with rising threats, necessitating significant focus on operational resilience. The Central Bank will prioritise how firms are securing consumer interests and responding to technological change. Additionally, the Central Bank will continue to increase the efficiency and effectiveness of its regulation and supervision, including embedding its integrated supervisory approach, improving gatekeeping processes, and delivering on initiatives outlined in its roadmap from the end of 2025.
The outlook follows the Governor's letter to the Tánaiste on the economic outlook and regulatory priorities in January 2026.
REFERENCES:
Central Bank of Ireland. (2026). Regulatory & Supervisory Outlook 2026. Available at: https://www.centralbank.ie/