part of this century. finally, we continue to develop the macroprudential framework for non - banks with two macroprudential measures relating to cohorts of investment funds already announced. we are monitoring the phased implementation of limits on leverage for irish property funds. and our measures on irish - authorised gbp sterling liability driven investment ( ldi ) funds, announced earlier this year, safeguard resilience against shocks to uk interest rates. we continue to support the development of an overarching macroprudential framework for investment funds working with our international partners in this area. we recently published our response ( pdf 699. 99kb ) to the european commission's targeted consultation on macroprudential policies for nbfi, in addition to contributing to a eurosystem response ( pdf 714. 35kb ). thank you for joining us today. i will hand you over to director of financial stability mark cassidy to take us through the report, before taking questions. 2 / 2 bis - central bankers'speeches

ensure as far as possible that risks to the financial system as a whole are minimised. insofar as the bank examines individual customer accounts, its focus is always on the solvency of the institution. our main attention is focused on the quality of loans and other assets and good management. we frequently come across breaches of the rules. many of these would be of a minor nature. most are dealt with by administrative action. we discourage applications for banking licences unless we are fully satisfied as to the status of the applicant. no system of supervision, however comprehensive, can give a one hundred per cent guarantee against abuse. effective supervision requires the co - operation of the entity that is being supervised. despite the improvements in controls, and international co - operation, bank failures continue. the ultimate objective worldwide is to avoid systemic problems. arising from the tribunals of inquiry and other recent developments, there has been some confusion about the confidentiality exercised by the central bank in relation to its functions. may i say at the outset that we are co - operating to the fullest extent possible with tribunal investigations. members are aware that the central bank is conducting an investigation following recent allegations against national irish bank. i am precluded from discussing individual cases. the bank is bound under law, to observe strict rules of confidentiality. it may not disclose information about individual entities or persons to any third parties, other than in exceptional circumstances. these include criminal proceedings in court, providing information to the gardai on money laundering and other criminal activity, including tax evasion, and transfer of information to other regulatory authorities. the bank is prohibited from communicating information to the revenue commissioners. we are not tax investigators. it is the duty of individual financial institutions to report to the gardai suspicions of criminal activity ( including tax evasion ) by their customers. i understand that such reports to the gardai are not infrequent. if we become aware of tax abuse, by an institution that we supervise, it is our duty to notify the gardai. these requirements derive from and are consistent with european union laws. other banking supervisors in the european union are subject to similar confidentiality requirements. our situation is in no sense unique. if the irish authorities attempted to abandon these requirements, not only would we be in breach of eu law but we would forfeit the co - operation of other supervisors in exchanging information. this exchange of information is vital. without it, we simply could not operate as