Ireland : Financial System Stability Assessment Update

The Irish financial sector has continued to perform well since its participation in the Financial Sector Assessment Program (FSAP) in 2000. Although the outlook remains very strong for 2006-07, there are some macroeconomic risks that could have implications for the financial system asset quality. The financial system seems well placed to absorb the impact of a downturn in either house prices or growth more generally. Further, good progress has been achieved since the 2000 FSAP in strengthening the regulatory and supervisory framework.