Central Bank sets out its regulatory and supervisory priorities against the backdrop of geoeconomic shifts and accelerating technological changes that are reshaping the financial system
Executive Summary
The Central Bank of Ireland (CBI) has published its **Regulatory & Supervisory Outlook 2026**, outlining priorities shaped by geoeconomic fragmentation, technological acceleration, and elevated risks like operational resilience, cyber threats, data/AI, and consumer protection. This matters for compliance professionals as it signals intensified supervisory scrutiny, including desktop and onsite inspections, across Ireland's financial sector to ensure resilience and adaptability amid uncertainties.[https://www.centralbank.ie/news/article/press-release-central-bank-sets-out-its-regulatory-and-supervisory-priorities-26-february-2026][https://www.ogier.com/news-and-insights/insights/regulatory-outlook-2026-the-central-bank-of-ireland-s-priorities-explained/] #
What Changed
No new binding regulatory requirements are introduced in this publication, which serves as a strategic outlook rather than enforceable rules. Key shifts in risk assessment include elevated operational risks (due to geopolitics, digitalisation, complex models), increased asset valuation/market risks, and rising data/models/AI risks, while inflation/interest rate risks have decreased. Priorities emphasize four overarching areas: (1) resilience to geopolitical/macro-financial uncertainties; (2) securing consumer/investor interests; (3) operational/cyber resilience; (4) technology response, including AI and innovation. Ongoing initiatives include embedding an integrated supervisory approach, improving gatekeeping, and a regulatory efficiency roadmap.[https://www.centralbank.ie/news/article/pre
What You Need To Do
- Conduct robust scenario testing and risk assessments for operational resilience, cyber threats, credit/market/liquidity risks, and document outcomes within compliance monitoring programs
- Implement revised CPC by 24 March 2026, assessing scope changes and business impacts
- Enhance financial crime controls, including fraud victim support, scam awareness, and market abuse detection; monitor AMLA developments
- Embed ESG/climate risks into governance, risk management, and business models, preparing for SFDR 2
- Review AI/data/models usage and operational frameworks for supervisory inspections; engage with CBI Innovation Sandbox if applicable
- Prepare for integrated supervision via gatekeeping enhancements and streamlined reporting
Key Dates
Compliance Impact
Urgency: High – This outlook directly previews intensified 2026 supervision, with operational/cyber resilience and consumer protection as "key concerns" likely triggering unannounced inspections and enforcement. Firms risk findings on outdated resilience testing or CPC gaps, especially amid elevated risks; proactive alignment now prevents remediation costs and sanctions, given CBI's efficiency roa
Who is Affected
Summary
The Central Bank has today published its Regulatory & Supervisory Outlook 2026 , which sets out its latest assessment of the risk landscape facing the financial sector and the supervisory work it will undertake in response. This follows on from the Governor’s letter to the Tánaiste on the economic outlook and regulatory priorities in January . This is the third year of the report, which continues to be set against a backdrop of a changing, uncertain and increasingly complex external environme...