A Central Bank is a national bank that functions to provide its country’s government and commercial banking system with financial and banking services. A Central Bank achieves this purpose by managing and overseeing the country’s monetary policy and currency. Simply, a Central Bank is the regulatory authority of a country’s financial system and monetary policy, and it can act on both the macro and micro level.
Therefore, the Central Bank of Ireland oversees and maintains Ireland’s financial services and monetary policy by serving as their regulatory authority. According to the Central Bank of Ireland website, their purpose is to serve “the public interest by safeguarding monetary and financial stability and by working to ensure that the financial system operates in the best interests of consumers and the wider economy” (2021).
In its work concerning the Irish Financial System, the Central Bank of Ireland primarily functions to identify risk to financial stability. Doing so allows the Central Bank to issue prompt alerts on any emerging concerns as well as mitigate risk. This is all done to safeguard and ensure financial stability within the Irish Financial System.
The Central Bank of Ireland also has currency responsibilities included under their work and regulation of the Irish Financial System. The Central Bank is entrusted with ensuring that both national and European systems of payment are protected. Therefore, they can issue currency and produce banknotes and coins that are consistent with the Eurosystem’s quality standards.
The primary responsibility of the Central Bank of Ireland concerning Monetary Policy is to ensure and maintain price stability as part of the Eurosystem. Because Ireland is a member of the Eurosystem, the Central Bank of Ireland is responsible for implementing any policy decisions and changes made by the European Central Bank (ECB). Lastly, the Central Bank of Ireland is also responsible for managing liquidity.
Regarding regulation, the Central Bank of Ireland works to regulate Irish financial services through authorization, supervision, and enforcement. The purpose of this regulation is to maintain and ensure financial stability in the Irish Financial System, as well as to protect consumers and ensure market integrity. The Central Bank of Ireland conducts this regulation through “risk-based supervision” of the market and the “credible threat of enforcement.
The Central Bank of Ireland oversees and regulates financial services and monetary policy in Ireland. They represent Ireland in the Eurosystem and are responsible for implementing and enforcing the ECB’s policies as part of the decentralization of the system. This is all done to protect consumers and provide monetary and financial stability.