Central Bank to introduce macroprudential rules for property funds

Gabriel Makhlouf, governor of the Central Bank, said the measures are designed to limit leverage and liquidity mismatches in the institutional property fund sector

25th November, 2021
Central Bank to introduce macroprudential rules for property funds
Gabriel Makhlouf, governor of the Central Bank: ‘Leverage is higher among Irish resident property funds than European peers, creating additional vulnerability to price falls.’ Picture: Patrick Browne

The Central Bank of Ireland is preparing to introduce macro-prudential rules that will limit the amount of money institutional property funds can borrow in Ireland. The financial regulator said a cohort of the circa 200 property funds operating in Ireland are currently leveraged higher than their European peers, which it said creates additional vulnerability to price shocks and could result in a wave of property sales in a distressed market situation.

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