Banking

Central Bank launches consultation on regulation of investment funds in Ireland

Assets of non-bank sector in Ireland totalled €6.3 trillion at the end of 2021, up from €1.5 trillion in 2008

The Central Bank had previously warned that the substantial growth of non-bank finance has fundamentally altered the Irish financial system. Picture: Getty

The Central Bank has moved to regulate the so-called shadow banking sector in Ireland by asking stakeholders for opinions around how to develop macroprudential rules for investment funds.

The regulator on Tuesday launched a discussion paper to advance European and international discussions about how the regulation of these funds could be achieved.

The size of these funds has grown significantly over the last number of years, including in Ireland, the Central Bank said, representing 17 ...