Tag Archives: Central Bank

Yesterday.

Activists from socialist republican party Éirígí unveil a banner outside of the Central Bank high-security currency centre facility in Sandyford calling for the site to be used for the construction of Universal Public Housing.

Last April, in a move that indicated a forthcoming sale of the 37-acre site,  the Central Bank asked Dún Laoghaire-Rathdown council to maintain residential zoning on the site.

In 2018, the site was taken off the land hoarder’s list in 2018 because of the high cost of securing the currency facility.

Éirígí’s representative for the Rathdown area, Brian Leeson, said,

“The Central Bank recently wrote to DLR to request that the residential zoning of their Sandyford facility be maintained. As part of that request the Central Bank outlined that it is actively considering selling off some or all of this 37 acre site. We are here today to highlight the fact that this land is potentially going to be sold off to a private developer or vulture landlord and to demand that it is instead retained in permanent public ownership.

“To put the size of the full site in context, it is ten acres bigger than the Central Mental Hospital site in Dundrum and unlike that site, there are no historically important buildings which must be preserved. It could easily accommodate over 1,000 new homes as well as new community facilities and new recreational areas – 1,000 permanently affordable homes for local people from all income backgrounds who are currently being denied access to secure, affordable housing.”

Previously: Central Bank asks council to maintain residential zoning at Sandyford currency centre (Irish Times, April 29)

This afternoon.

The National Treasury Management Agency has withdrawn stockbroker Davy’s authority to act as a primary dealer for Irish Government debt.

It comes as the NTMA said it plans to raise €1-1.5 billion of debt on Thursday through the sale of 10 and 29-year Treasury bonds.

The agency said its board had reached its decision on Davy based on its “assessment of the very serious findings” relating to the firm that were made by the Central Bank last week.

Earlier…

This afternoon.

Further to the resignation of three senior figures at Davy stockbrokers, including its chief executive and deputy chairman, after the firm was fined €4.1m  by the Central Bank for breaches in regulations during a 2014 bond transaction [Employees acting as a consortium of investors had been buying unlisted Anglo Irish Bank bonds from a client at an agreed price]…

Via RTÉ

The National Treasury Management Agency has declined to say whether stockbroker Davy will take part in the bond auction planned for later this week.

It comes after the new interim chief executive of Davy, Bernard Byrne, addressed staff at the company this morning.

It is understood that in his address, Mr Byrne acknowledged that the board of Davy understands that there were failings and that he committed to act with urgency and do the right things, subject to due process being observed.

Sources indicated there was a tone of humility to what Mr Byrne said and a recognition that Davy had “got it wrong”.

Good times.

NTMA won’t say if Davy will take part in bond auction (RTÉ)

RollingNews

Ah here.

Also: Ew.

She has the metal strips.

Don’t worm out of this, Central Bankstards.

Thanks Alan Bracken

Gabrial Makhlouf, Governor of the Central Bank of Ireland, reporting to the Oireachtas Special Committee on Covid-19 Response

This morning.

Covid-19 Committee, Leinster House, Dublin 2.

On the fiscal impact of Covid-19, Gabrial Makhlouf, Governor of the Central Bank of Ireland said:

“Given the scale of uncertainty surrounding the economic outlook, last week we set out two scenarios: one – our baseline – assumes that the phased easing of the containment measures takes effect as planned; the other – a more severe scenario – assumes the current containment measures remain in place for longer because of a resurgence of the virus.

Under our baseline, consumer spending is projected to rebound in the second half of this year but to decline by 10 per cent for the year as a whole….

…Under the severe scenario, GDP would fall by over 13 per cent this year and output would not recover to its pre-crisis level until 2024.”

Gulp.

Coronavirus in Ireland – Central Bank chief says outlook for Ireland’s economy is ‘very uncertain’ due to Covid-19 (The Irish Sun)

Meanwhile…

Gabriel Makhlouf has confirmed banks are not required under regulatory rules to charge interest on mortgage payment breaks.

This contradicts claims made by the banks in a meeting with the then Taoiseach Leo Varadker.

Central Bank governor contradicts banks on mortgage payment breaks (Independent.ie)

Rollingnews

This afternoon.

St. Kevin’s College, Crumlin, Dublin.

President Michael D. Higgins (top and above right) with singer Brush Shiels (above) and, pic 2 from left, sisters Sarah and Cathleen Lynott, daughters of Phil Lynott, in the library which bears his name at his former school for the launch of the Central Bank’s new Phil Lynott Commemorative Coin.

Eamonn Farrell/RollingNews

Earlier...

This morning.

The Central Bank of Ireland has launched a €15 silver commemorative coin to mark 70 years since the year of birth of Phil Lynott.

The coin will be officially launched by President Michael D. Higgins at St. Kevin’s College, Crumlin, Dublin – Phil’s former school – today.

Any excuse

Central Bank via Rollingnews


This morning.

Via RTÉ:

In its latest Quarterly Bulletin, the Central Bank forecasts 34,000 fewer jobs by the end of next year and 110,000 fewer jobs over the next ten years.

It said: “A disorderly Brexit would present enormous challenges for the Irish economy, especially in the near term, and would result in a loss of output and employment compared to a scenario where the UK remained in the EU.”

….The bank says that gauging the impact this could have on the Irish economy is “the most uncertain exercise” it has ever had to carry out.

110,000 fewer jobs after no-deal Brexit – Central Bank (RTÉ)

Rollingnews

Meanwhile…

From top: The Central Bank in Dublin; Opening page of a letter from the Central Bank to the heads of financial institutions in Ireland

Yesterday.

The Central Bank wrote a seven-page letter to the CEOs of financial institutions in Ireland about their obligations under the Fitness and Probity Regime introduced by the Central Bank under legislation in 2010.

Essentially, the letter reminds the CEOs that their responsibility to ensure staff adhere to fitness and probity laws does not stop after they hire a person – but that they must ensure staff adhere to these rules “on an ongoing basis”.

The letter states that while the obligations of individuals within the industry appear to be “well known”, firms appear to have a “less understanding” of these obligations.

The authors of the letter – Director General of Financial Conduct at the Central Bank Derville Rowland and Deputy Governor of Prudential Regulation at the Central Bank Ed Sibley – say that one issue of “particular concern” is due diligence on an “ongoing basis” in respect of certain employees who have a “controlled function” [CF].

The letter states:

“We have seen instances where serious issues have arisen which should have prompted a firm to ask itself if a particular person in a CF role was still ‘fit and proper’.

“In one example, an individual had a significant judgment registered against them, such that questions arose over that individual’s financial soundness, but the firm failed to take any steps to satisfy itself that the individual still complied with the standards.

“Similarly, we have seen examples where individuals have been criticised publicly by other regulators and/or the courts for past actions. However, their current firms have failed to take any steps to assess whether those individuals are still fit and proper, and it has been left to the Central Bank to intervene.”

In addition, the letter raises concerns about institutions not informing the Central Bank about individuals who’ve been dismissed for fraud.

It states:

“We also see instances where Firms have identified fitness and probity concerns about an individual and have taken steps to address these, but have failed to
report those concerns to the Central Bank.

“In some cases, the firms have gone so far as to suspend or dismiss the individuals for fraud but have neglected to report this to the Central Bank.

“In that scenario, the Central Bank is unable to consider an individual’s misconduct, in particular in respect of any future PCF [pre-approval controlled function] application that an individual might submit.

“To be clear therefore, where your Firm has any fitness and probity concerns regarding a person who is performing a CF role, and takes action on foot of those concerns, you must notify the Central Bank without delay.”

The letter also states that the Central Bank, under its ‘gatekeeper’ remit, is supposed to approve the promotion of people to certain senior positions in writing – after this approval is sought by the firm.

But, the letter states, some firms have not sought the Central Bank’s approval and, in certain cases, the individuals who were promoted “have been those roles for a considerable time“.

The letter adds:

“You, your board and any relevant committees play a critical role in ensuring that the right people are proposed as PCFs. It is crucial that you ask not merely whether a given candidate is competent, but also whether the individual acts with integrity at all times.”

The letter can be read in full here

Earlier: Nothing To See Here Ever

Thanks Breda

From the Central Bank’s latest quarterly report published today

The Central Bank published its latest quarterly bulletin this morning.

From the report:

“Following a strong performance last year, the growth of the Irish economy is projected to moderate somewhat in 2019 and 2020, reflecting both the impact of a less favourable and more uncertain international environment and also the limits imposed by domestic capacity constraints as labour market conditions tighten.

“…The central projection continues to assume that a disorderly, no deal Brexit scenario can be avoided and that trading relationships between Ireland and the UK remain unchanged over the forecast horizon.

“…A disorderly, no deal scenario would have very severe and immediate disruptive effects, with consequences for almost all areas of economic activity. ”

“…However, Brexit is not the only risk to the Irish economic outlook. On the external side, there continue to be other downside risks facing the Irish economy. The international economic outlook has weakened since the publication of the last bulletin.

“Given the position of Ireland as a small, highly open economy and the important role of multinational firms within the economy, the evolution of global economic and trading conditions and movements in major exchange rates will have an important bearing on Irish economic performance.”

Quarterly Bulletin (Central Bank)

Central Bank slightly reduces estimates for economic growth this year (RTE)

 

First Time Buyer writes:

It’s official we are back. And  by ‘we’ I mean homeowners and landlords

Two reports out today, one from the central bank to let us know that some people in Ireland are wealthier then they were during the boom thanks to the rapid recovery in house prices (**breaks out the Bolly**)

The other report from Daft.ie stating that for those unfortunate enough not to own a home that rents have risen by an incredible 70% and are now 23% higher than Celtic Tiger peak (**cries into avocado toast**)

We’ve moved from a country for developers to a country for landlords.

This madness must end.

Daft Rental Report

Irish households now wealthier than during the boom (Irish Times)