gabriel makhlouf : progress, not regress - financial regulation in challenging times remarks by mr gabriel makhlouf, governor of the central bank of ireland, at financial services ireland, dublin, 20 november 2024. * * * many thanks for the invitation to come here this evening and to share some thoughts with you. i believe it is 40 years since financial services ireland was first established, so it is a particular pleasure to deliver this keynote tonight. i was asked to speak about'the role of financial services in the irish economy '. an excellent topic. for we often focus too much on the sector itself rather than the important role it plays for our citizens and economy. ensuring the sector can deliver on this role is a core part of our mission, which is to " serve the public interest by maintaining monetary and financial stability while ensuring that the financial system operates in the best interests of consumers and the wider economy. " why financial services matters financial services is such a fundamental part of our daily lives, and daily economic activity, that we rarely stand back to think about and recognise why it matters for households, for businesses and for our economy. the sector plays a key role in our economic existence. for households this includes safeguarding their money through deposits and investments. and allowing the smooth transfer of that money in the form of payments. it includes mortgages, pensions and other products, providing important forms of lifetime consumption smoothing. as well as insurance products, insuring against different states of the world, protecting people, pooling risks, and providing peace of mind. for businesses and the economy, the sector plays a key role in the efficient allocation of capital, taking risks and turning innovations and ideas into real live businesses, who in turn employ people and generate growth. all of which is fundamental to productivity and the long - run economic wellbeing of our country. 1 / 7 bis - central bankers'speeches through this broad contribution, i think we can all agree and recognise the important role financial services plays in the economy. and indeed there is a wide economic literature to back us up. but if the importance and benefits of finance are clear – when it goes right – the risks and harm should be also clear if it goes wrong. and while there is a much empirical evidence on the benefits of finance for growth, there is an equally wide and important literature on social and economic costs of financial fragility. 1 indeed we can see how important financial services is to our economy by the very

factor in industrial location ; inefficient regulation can therefore be as useless as no regulation. now the central bank ’ s almost 1400 staff are a multiple of what can be accommodated in the dame street building, and of course we can ’ t imagine adding floors to the already notoriously over - high building. staff in fact are now scattered across six locations as far apart as spencer dock and the top of harcourt street ( in addition, of course to the currency centre in sandyford ). as you have heard, the central bank is currently looking for a new home in the city. no firm decision has been taken, but it looks as if the clock is ticking for our occupancy of the dame street tower. we won ’ t go suddenly, and we won ’ t board it up. there could be scope to retain some central banking activities here for a number of years, if it takes that long before a suitable purchaser emerges. we have some ideas here and are open to others. bis central bankers ’ speeches a new development on dame street has been the arrival of the occupy movement. while not everyone is happy with their being there, several people have said to me that their presence symbolises, albeit in a rather ambiguous and even incoherent way, the feelings of a large part of society in regard to what has gone wrong in the financial sector and with the banks. we don ’ t welcome their presence, but – as long as no - one is harmed or put in danger by them – we are not at present inclined to take action to have them moved away. all of this serves to remind us that the financial landscape in which we live – and transact – changes all the time. this publication provides us with an insight into the development of a fine architectural tradition. and valuably it chronicles how the evolution of trade and commerce has left its mark through the bank architecture around the city. i would like to congratulate michael and the city council on a fine publication. bis central bankers ’ speeches