There will be a “paradigm shift” in the regulatory approach of the Central Bank, with a degree of intrusiveness and assertiveness that was “sadly lacking” in the past, Patrick Brady assistant director general for policy and risk at the Central Bank, has said.
A regulatory risk model is being developed which will target the Central Bank’s resources at the highest-risk institutions. Each institution’s risk score will depend on the level of capital, funding and liquidity, as well as deposits and lending.