It’s financial supervision, but not as we know it, as changes come thick and fast

A decade after Ireland’s devastating financial crisis, the state of financial supervision is arguably much better. The flawed philosophy of ‘principles-based’ supervision, whereby financial firms were largely left to their own devices as long as profits were high and credit losses low, has been replaced by ‘intense supervision’. Rigorous processes, independent controls and sound risk culture are now key concerns of the Regulator.

The resources devoted to supervision have increased dramatically. The Central ...