liquidity framework within the eurosystem and the significant volumes of collateral held means that irish banks are well positioned to access eurosystem liquidity. also, a fuller assessment of the funding patterns of irish banks indicates that there is a significant medium - term element to much of their funding, as well as a relatively wide range of funding options available to them. finally, our stress - testing of the banking system and our extensive financial stability analysis indicate that irish banks are solidly profitable and well - capitalised. in this context, it is worth noting that they have one of the lowest rates of non - performing loans among banks in all eu countries. lessons from the current episode of financial market turbulence as the evolution and duration of the current episode is uncertain, it is difficult to draw firm conclusions at this early stage. nevertheless, eu finance ministers have looked at recent events and have set out a roadmap of issues to address, to help avoid a repeat of recent events. a number of areas would seem to require attention in the near future : there is a need to improve transparency about where financial risks lie. the lack of accurate and timely information on exposures and underlying risks has been an important factor in triggering the loss of investor confidence in recent months ; while securitisation and financial innovation have significantly enhanced credit risk transfer, they have had other, less benign – effects. in particular, the “ originate and distribute ” model behind securitisation has changed the incentives for lenders regarding the monitoring of risk and we probably need some more checks and balances here ; clearly, rating agencies play a very important role and should continue to do so. however, there are some potential conflicts of interest and how these are handled needs to be thought through, as does the question of whether a more differentiated scale of ratings for structured credit products is appropriate ; the issue of how to value complex products, many of which are not traded on markets with genuine liquidity, also needs further consideration. conclusion the publication of this report is one way in which the central bank & financial services authority of ireland fulfils its financial stability mandate. in addition, we maintain an active dialogue with the domestic credit institutions in order to highlight issues for the financial system, and the central bank works in close co - operation with the financial regulator to help maintain financial stability in ireland. the financial regulator conducts regular on - site inspections and monitors banks ’ exposures on a regular basis. finally, we continue to develop procedures to assess and

in national policy support in recent years, including job and income retention measures. the different position of countries in the business cycle is reflected in cross - country inflation differences, which have also been affected by differences in energy import dependence. in both respects, the cesee region is relatively more exposed to inflationary pressures, which increases the risk of a more sustained deviation of inflation from the euro area average. 1 / 2 bis - central bankers'speeches the resilience of our economies has stemmed from both robust domestic demand and better - than - expected export performance after the russian invasion on ukraine. however, geopolitical tensions have increased the uncertainty about the future of global trade integration and the strength of global growth. in the last decade, we are experiencing globalization's turn to " slowbalization ". the supply chain disruptions and geopolitical tensions have made governments around the world reconsider their engagement in the world trade, many of them resorting to nearshoring patterns and shortening production chains. given their strong participation and relatively downstream positioning in global value chains, the cesee countries stand particularly vulnerable to such de - globalization trends that could in the medium - and long - term act in a stagflationary manner. returning to regional trends, domestic factors are becoming an increasingly important driver of inflation in the euro area and the cesee region alike. over the past year, profit margins in the euro area have risen noticeably and wage growth has strengthened against a backdrop of tightness in the labour market. the latter is even more pronounced in the cesee region. the continuation of these trends could threaten the competitiveness of our exporters. at this stage, it is important that fiscal and other economic policies take into consideration their disinflation role and support monetary policy in easing price pressures. failure to coordinate the policy response could result in more persistent inflation rate divergence among economies, which a common monetary policy will not be able to address. slovenia's past experience with high inflation shows that its persistent reduction requires an orchestrated effort of various policies. to conclude, this year has started better than expected after the russian invasion of ukraine and the subsequent energy crisis last year. nevertheless, policy makers face significant challenges, primarily how to tame high inflation without stifling economic growth. we have already done a lot on the monetary policy side, but high and broad - based inflation resonates further action. as the domestic drivers of inflation increasingly come to the fore, it has become even more