Publication of the Macroprudential Policy Framework for Irish Property Funds and the Feedback Statement to Consultation Paper 145 on Macroprudential Measures for the Irish Property Fund Sector


Date: 24 November 2022

The Central Bank has today published its Macroprudential Policy framework for Irish Property Funds, available here. Irish-authorised funds investing in Irish property have become a key participant in the Irish commercial real estate market. Given the growth in these funds, the resilience of this form of financial intermediation matters more today for the functioning of the overall CRE market than it did a decade ago. In turn, dislocations in the CRE market have the potential to cause and/or amplify adverse macro-economic or financial stability shocks, through a range of channels. As such the Central Bank is today introducing macroprudential measures by way of i) imposition of a leverage limit for authorised investment funds that invest fifty per cent or more of their assets under management directly or indirectly in Irish property; and ii) Central Bank Guidance on liquidity timeframes for such funds.

The Central Bank has also published its Feedback Statement in response to Consultation Paper 145 (CP145) on macroprudential measures for the Irish property fund sector; together with the individual responses to CP145, both documents are available here.