Irish central bank boosts leadership team to deal with increased workload

More work for recruiters at Ireland’s central bank.

The Central Bank of Ireland is bolstering its senior team and restructuring its financial regulation arm, as it attempts to adapt to Dublin’s growing importance as a financial centre and the prospect of a further influx of new responsibilities after Brexit.

A new deputy governor for prudential regulation will replace Cyril Roux, the deputy governor for financial regulation who left the bank in April.

The CBI is only allowed to appoint two deputy governors. However, Mr Roux’s replacement will be joined by a new “director general” for financial conduct, who will also report directly to the bank’s governor.

The bank’s financial regulation arm will be split into two main pillars, with one focusing on prudential regulation — including supervising credit institutions, insurance and asset management — and one focusing on financial conduct, including supervising and enforcing consumer protection and securities and markets issues.

The central bank said the changes are “designed to ensure the central bank is suitably equipped to meet its expanded regulatory mandate”.

Stricter regulation in the wake of the financial crisis, together with the growth of new types of financial business in Ireland, have led to sharp increases in the CBI’s regulation activity in recent years.

In April it told all banks operating in the country to review their reporting standards after an investigation found many breaches of rules. Earlier this month the central bank called for greater scrutiny of the exchange traded fund industry. Ireland is the largest European domicile for ETFs.

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A potential influx of new businesses interested in relocating from the UK after Brexit has piled further pressure on the central bank, which has planned a hiring spree to deal with the expected increase in work.

However, it has struggled to fill roles in recent years, thanks in part to staff pay restrictions, which were introduced during the financial crisis.

After Mr Roux announced his resignation in March, Michael McGrath, finance spokesperson for the opposition Fianna Fáil party, said “the Central Bank cannot compete with the remuneration arrangements offered by the private financial services sector”, and said “the level of vacancies across vital functions of the central bank is a cause of concern”.

The CBI said competitions for the new leadership roles will open next week.

Philip Lane, CBI governor, said:

This restructuring will provide the Central Bank with strong foundations to carry out its vital financial regulatory mandate, ensure the Central Bank can maintain its strong performance across the European Supervisory Authorities and ensure robust protection of consumers and investors in line with our mandate and our mission to safeguard stability and protect consumers.