The Central Bank of Ireland Regulatory & Supervisory Outlook 2026

14 May 2026

The Central Bank of Ireland’s (“CBI”) Regulatory & Supervisory Outlook 2026 (the “Outlook”), published on 26 February 2026, sets out their plan for the year ahead when looking at a challenging risk environment across the financial system.

For regulated entities in banking and payments, insurance and reinsurance, and markets and funds, the CBI portrays a clear message; they expect stronger financial and operational resilience, clearer accountability, and a focus on fair outcomes for consumers and investors.

Cross-sector themes

There are certain themes which can be applied to the different industries including:

Macroeconomic and Geopolitical Environment;
Firms’ Response to Change; and
Longer Term Structural Forces at Play.

Macroeconomic and Geopolitical Environment

Ongoing global uncertainty, geopolitical fragmentation, and macro-financial volatility continue to shape the risk landscape. These pressures can affect operational risk and resilience, asset valuation and market risks, liquidity and leverage, and credit and counterparty risks.

The CBI’s response centres on testing financial resilience, ensuring firms understand and have the mechanisms to withstand adverse scenarios, and on reinforcing operation and cyber resilience where disruptions or geopolitical tensions could impact critical services.

Firms’ Response to Change

Rapid digitalisation, increased use of data and AI, and evolving customer and investor expectations offer opportunities but also amplify risks. Across sectors, the CBI is focused on consumer and investor detriment risks, financial crime risks, risk management practices and risk transfer, and data, modelling and AI risks.

Longer Term Structural Forces at Play

Structural transitions, particularly climate and environmental risks, evolving business models and long-term strategic sustainability, are central to the Outlook. The CBI focuses largely on climate and environmental-related risk, and business model and strategic risks.

Sectors

The Outlook also looks at the different sectors and identifies the specific risks and areas to focus on:

Banking and Payments

Risks

Business model viability and strategic planning in an evolving competitive environment;
Financial and operational resilience, including capital, liquidity and credit risks;
Governance, culture and risk management frameworks;
Treatment of customers;
Financial crime risks, including anti‑money laundering and counter‑terrorist financing; and
Safeguarding of customer funds within payment and e‑money institutions.

Supervisory Focus

Ongoing assessment of banks’ financial resilience and risk management capabilities;
Supervisory engagement on operational resilience, including ICT risk management and dependency on third‑party service providers;
Targeted reviews of safeguarding arrangements within payment and e‑money firms; and
Continued supervisory focus on governance and protection of customers.

Insurance and Reinsurance

Risks

Climate and environmental risks and how these are integrated into risk frameworks;
Financial resilience, including underwriting risk, reserving and capital adequacy;
Consumer protection, including claims handling practices and product design;
Operational resilience and outsourcing arrangements; and
Digitalisation and artificial intelligence.

Supervisory Focus

Engagement on insurers’ approaches to climate and environmental risk management;
Supervisory reviews of underwriting discipline and reserving practices;
Monitoring of operational resilience; and
Reviews of customer service levels and claims handling.

Markets and Funds

Risks

Liquidity risk management and valuation practices;
Operational and cyber resilience across funds and fund service providers, including safeguarding of assets, including crypto-assets where relevant;
Governance, risk management and delegation arrangements, including conflict of interest and controls;
Risks associated with innovation and technological change, including data and systems risk;
Climate, ESG and sustainability-related risks;
Investor protection and customer outcomes, including product costs and quality of disclosures; and
Market and financial integrity, encompassing market abuse risk and market surveillance.

Supervisory Focus

Thematic reviews of liquidity risk management and valuation processes;
Ongoing supervisory engagement on operational resilience and outsourcing;
Assessment of governance and oversight arrangements within fund management companies; and
Continued monitoring of market conduct and investor protection risks.

Regulatory Initiatives

The Outlook situates these priorities within a wider programme of regulatory change, which are already implemented or due over the next two years, including;

The Finance (Provision of Access to Cash Infrastructure) Act 2025;
The EU AML and Countering the Finance of Terrorism legislative package;
The EU Artificial Intelligence Act;
The Revised Consumer Protection Code;
The Credit Union (Amendment) Act 2023;
The European Accessibility Act;
Solvency II;
Basel III Finalisation;
The Pre-Approval Controlled Function; and
A review of the Corporate Governance Codes during 2026.

Conclusion

Overall, the CBI has identified the challenges, both domestic and global, facing the different sectors while also showing where their supervisory focus will be throughout the year. It has also noted that this is the first year since the implementation of DORA and expect to have further data to review in the coming year.

How KPMG Law LLP can help

The Financial Services Regulation team within KPMG Law LLP can assist regulated entities in understanding and responding to the CBI’s regulatory and supervisory priorities.

We advise across the full lifecycle of regulatory engagement, including governance and accountability frameworks, operation and financial resilience, consumer and investor protection, and the implementation of evolving EU and domestic regulatory requirements.