is small. [ lx ] the central bank does not prudentially regulate clos but that does not mean that they are without risk. clos may amplify the spread of risk throughout the financial system due to uncertainty over who is exposed to them. the key point is that the resilience of market - based finance at the current scale – both in ireland and internationally – remains untested in times of stress. i am particularly interested in understanding and assessing the risks in the non - bank sector as are many of my colleagues around the world. ireland is – and has to be – at the forefront of these policy discussions. i will give a much wider assessment of both the macrofinancial environment and the resilience of the financial system when we publish our financial stability review next month. in summary, changes are taking place in our financial system. given our international interconnectedness, building resilience through this transition is essential. how do we meet these challenges? so, how do we meet the challenges posed by these transitions? for me it ’ s about continuing to focus on the fundamentals, about managing the short term while planning for the medium term, ensuring our frameworks are fit - for - purpose and learning the lessons of the past while preparing for the future. it ’ s also about being prepared to challenge ourselves. first, we must continue to focus on fundamentals. successful economies need stable and sustainable macroeconomic frameworks and sound monetary policy that delivers predictable prices. they also need stable and well - regulated financial systems and wellfunctioning markets. the central bank will continue to focus on its core mandates of price stability, a stable financial system and the protection of consumers. second, we need to focus on the medium term while managing the short term. focussing excessively on short - term issues risks losing sight of both the fundamentals and our overarching objectives. third, regular reviews of frameworks are good practice and we need to ensure our frameworks are fit - for - purpose. macroprudential policy one such area where this applies is macroprudential policy. one of the key lessons from the crisis was that focusing on monetary stability and the safety and soundness of individual institutions was not enough. a key missing plank of the macroeconomic framework were policies designed to strengthen the resilience of the system as a whole. since the crisis, one of the main innovations has been the introduction of a macroprudential framework

graduates, exceptional students interested in our work, motivated by public service. they give me immense optimism about our capacity – as a country, as a global community – to tackle the challenges we face. they understand the value of working together, and they bring critical new thinking to complex issues. they throw themselves into the tumult. and that is the best way to deal with the challenges ahead of us. go raibh maith agat. [ i ] i would like to thank all the colleagues in the central bank of ireland who contributed to the preparation of my remarks. [ ii ] keane, j. 2008. vaclav havel : a political tragedy in six acts. hachette uk, pp. 333. [ iii ] see remarks from my colleague, sharon donnery, risks and resilience in uncertain times. [ iv ] see waterford county museum, ‘ waterford geology and prehistoric dungarvan. ’ [ v ] see waterford county museum, ‘ early waterford history. ’ [ vi ] brophy, a. j. 2004. port of waterford : extracts from the records of the waterford harbour commissioners from their establishment in 1816 to the report of the ports and harbours tribunal. journal of the waterford archaeological and historical society, no. 60, pp 151 - 169. available here. [ vii ] see waterford medieval museum, ‘ king henry viii ’ s cap of maintenance. ’ [ viii ] lough, s. m., 1916. trade and industry in ireland in the sixteenth century. journal of political economy, 24 ( 7 ), pp. 713 - 730. [ ix ] ibid, pp. 718. [ x ] brophy, a. j. 2004. port of waterford : extracts from the records of the waterford harbour commissioners from their establishment in 1816 to the report of the ports and harbours tribunal. journal of the waterford archaeological and historical society, no. 60, pp 151 - 169. available here. [ xi ] see remarks from my colleague, sharon donnery, small open economies – vulnerabilities in a changing world. [ xii ] ibid. [ xiii ] see foreign direct investment in ireland 2017, central statistics office. [ xiv ] ibid. [ xv ] barry, f. and van egeraat, c., 2008. the decline of the computer hardware sector : how ireland adjusted. quarterly economic commentary, pp. 38 - 57. [ xvi ] see corporation tax 2018 payments and 2017 returns, revenue