Central Bank sets out its regulatory and supervisory priorities against the backdrop of geoeconomic shifts and accelerating technological changes that are reshaping the financial system

The Central Bank has today published its Regulatory & Supervisory Outlook 2026, which sets out its latest assessment of the risk landscape facing the financial sector and the supervisory work it will undertake in response. This follows on from the Governor’s letter to the Tánaiste on the economic outlook and regulatory priorities in January (PDF 3.24MB).

This is the third year of the report, which continues to be set against a backdrop of a changing, uncertain and increasingly complex external environment, characterised by geoeconomic fragmentation, rapid technological developments, and the structural transitions for economies and society underway.

In this context, the Central Bank’s assessment is that operational risks remain very high for the financial sector given current geopolitical tensions, advancing digitalisation and increasingly complex operating models. Relative to last year asset valuation and market risks are judged to have increased, as have the risks associated with data, models and AI. Inflation and interest rate risks have abated for the financial sector, reflecting both the evolution of inflation and monetary policy in the euro area, as well as the preparedness of the sector itself.

The Central Bank’s regulatory and supervisory priorities are set in the context of this risk environment and assessment, as well as our international responsibilities, and is delivered through our integrated supervisory approach.

Speaking on publication Governor Makhlouf said: “The world we are operating in continues to be characterised by geoeconomic shifts and fragmentation, alongside rapid and accelerating technological change. This backdrop is reshaping the financial system, as well as the risk landscape of the sectors we supervise and of the consumers and investors we work to protect.”

“While many of these developments provide clear opportunities, they have the potential to introduce or expose vulnerabilities. And risks once thought remote are now becoming more likely. The question is no longer whether change will come, but the nature, degree and speed of that change and how we respond collectively. Resilience, adaptability and trustworthiness are the qualities that must define that response.”

“It is against this backdrop that we have set out our supervisory priorities, as well as the focus areas and key supervisory work we will undertake for each sector in the period ahead. In particular, operational and cyber risks remain a key concern with rising risks and threats. As such there will be a significant focus again this year on operational resilience given its critical nature. How firms are securing their consumers’ interests in this rapidly changing world, and how they are responding to technological change, are also key priorities.”

“In 2026 we will also continue to build on the progress we have made in recent years to increase the efficiency and effectiveness of our regulation and supervision. This includes continuing to embed our integrated supervisory approach, continuing to improve our gatekeeping processes, and delivering on our roadmap of initiatives set out at the end of last year (PDF 440.55KB).”

ENDS