The Central Bank of Ireland is seeking approval from the Minister for Finance to be allowed to impose new rules that would enable it to force banks to hold more capital, Governor Philip Lane said on Tuesday. The Central Bank of Ireland is seeking approval from the Minister for Finance to be allowed to impose new rules that would enable it to force banks to hold more capital, Governor Philip Lane said on Tuesday. “The advantage of the systemic risk buffer is that extra capital would improve loss-absorbing capacity if a systemic risk event occurred. Furthermore, credit supply could be further protected by switching off the systemic risk buffer under such circumstances,” Dr Lane said. Banks here already face strict rules on the amount of capital they must hold and the central bank has introduced tough mortgage rules to prevent a repeat of the lending bubble of the 2000s that led to the State bailing out the banks when the financial crisis hit.

Source: Irish Independent April 16, 2019 19:18 UTC