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Identifying and assessing systemic risks in Ireland: a review of the Central Bank’s toolkit

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Listed:
  • Hallissey, Niamh

    (Central Bank of Ireland)

  • Killeen, Neill

    (Central Bank of Ireland)

  • Wosser, Michael

    (Central Bank of Ireland)

Abstract

This Note describes the Central Bank of Ireland’s overall approach and toolkit for assessing systemic risks in Ireland. The aim of systemic risk assessments is to identify and measure the potential for negative macro-financial outcomes (“tail risks”) to occur in the future. Evaluating the nature and magnitude of risks facing the financial system in a forward-looking, systematic manner is an important input to the setting of macroprudential policy. There are four main elements to the risk identification and assessment framework including (i) the monitoring of selected indicators, (ii) the development of analytical tools and modelling approaches, (iii) qualitative tools such as the use of surveys and engagement with stakeholders and (iv) targeted deep dives on specific topics to complement regular analysis. The risk assessment draws on these different elements to inform judgements on key risks facing the financial system in Ireland.

Suggested Citation

  • Hallissey, Niamh & Killeen, Neill & Wosser, Michael, 2022. "Identifying and assessing systemic risks in Ireland: a review of the Central Bank’s toolkit," Financial Stability Notes 16/FS/22, Central Bank of Ireland.
    • Handle: RePEc:cbi:fsnote:16/fs/22
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    References listed on IDEAS

    as
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