Ireland Weighs Move on Capital Buffer Amid Economic Uncertainty
- Central bank released counter-cyclical buffer two years ago
- Regulator had planned to rebuild CCyB gradually in 2022
Pedestrians cross the Samuel Beckett Bridge in Dublin.
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Ireland’s central bank is weighing whether to reinstate a capital buffer for banks it removed during the pandemic, amid a worsening economic outlook driven by the war in Ukraine.
The central bank expected to rebuild the counter-cyclical capital buffer (CCyB) “gradually” through 2022 given the Irish economic outlook, it said in November. However in its latest decision on the buffer published on March 24 but not publicized until now, it warned there is “considerable uncertainty” around the economic outlook. The buffer remains at 0%.