On Thursday 2 April 2020, the Central Bank of Ireland (CBI) launched its COVID-19 Hub (the Hub). The CBI states it has set up the Hub to bring together relevant and timely information, guidance and policy decisions for consumers, businesses and regulated firms, both from the CBI and other European authorities. The CBI notes that content will be updated as new information becomes available.
Within the Hub, the CBI sets out a number of actions that it and other European regulators have taken to mitigate the effects of COVID-19 on the economy and to ensure that the financial system is better able to support households and businesses in this difficult time. For example, the CBI has released the Countercyclical Capital Buffer from 1% to 0%. And the Single Supervisory Mechanism (SSM) of the European Central Bank (ECB) has announced that banks can temporarily use some of the supervisory capital buffers, which will mean they are better placed to continue to serve the economy, households and businesses at this time. The CBI has also clearly set out its expectations for financial services firms, particularly in the insurance and banking sector, that they should continue to ensure consumer protections continue to apply and that customers are treated fairly with individual circumstances taken into account.
FAQs
The Hub includes four FAQs: a General FAQ, a Consumer FAQ, a SME FAQ and a Regulated Firms FAQ.
Within the General FAQ, the CBI provides answers to the following questions:
- What is the Central Bank’s response to COVID-19?
- What is the monetary policy response to support the economy?
- What is the regulatory response to allow the banking system to support households and businesses?
- What actions has the Central Bank taken to protect consumers of financial services?
- How is the Central Bank providing economic analysis and advice in a period of heightened uncertainty?
- What actions have been taken to maintain the operational continuity of financial services?
In its Regulated Firms FAQ, the CBI answers the following queries:
- How is the Central Bank regulating the financial services industry in the current environment?
- Can insurance firms continue to make dividend payments in the current circumstances?
- What is the Central Bank doing to monitor securities markets, including funds?
- What should issuers of securities be doing at this time?
- What should securities market venues and other market participants be doing at this time?
- What should credit and financial institutions be doing to prevent money laundering and terrorist financing?
- Is the Central Bank extending reporting requirements for firms?
The CBI also provides high-level guidance in respect of pertinent COVID-19 related issues that consumers and SMEs will be facing in its Consumer and SME FAQs.
European Supervisory Authorities – communications and links
Finally, on its Hub homepage, the CBI has helpfully set out links to a number of other useful resources. These include communications on COVID-19 measures taken by European Supervisory Authorities such as the ECB, the European Banking Authority (EBA), the European Insurance & Occupational Pensions Authority (EIOPA), the European Securities & Markets Authority (ESMA) and the CBI itself. There are also links to other relevant agencies, such as the Banking and Payments Federation Ireland, the Competition and Consumer Protection Commission, the Financial Services and Pensions Ombudsman, the Government's COVID-19 resources website and Insurance Ireland's COVID-19 Hub.
Useful information in a convenient way
Regulated entities will find this a useful repository of information and resources when tackling COVID-19 pandemic related business issues. The FAQs and links within the Hub gather together important information for firms to be aware of (and action) in a convenient way. Monitoring the Hub will also give regulated firms a clear sense of the CBI's (and other supervisory authorities') expectations of them during this public emergency.
For more information, see here (statement from the CBI announcing the publication of its COVID-19 (Coronavirus) Hub) and here (for a direct link to the Hub).
