engagement helps us understand the issues faced by the businesses and households in the economy, the opportunities to enhance the performance of the nancial system, and any risks that may be developing. it also helps consumers and the nancial services industry understand what we do and why. https : / / www. centralbank. ie / news / article / speech - managing - risk - rebuilding - resilience - governor - gabriel - makhlouf - 11 - feb - 2021 5 / 7 11 / 02 / 2021 " managing risk, rebuilding resilience " governor gabriel makhlouf in the spirit of listening and learning, we are starting a consultation aimed at improving our engagement. we want to build on our existing arrangements including through our civil society roundtables12 and consumer advisory group13 to enhance our mutual understanding of cross - sector issues across the nancial system. for example, as part of the ecb strategy review, the central bank of ireland is hosting a listening event shortly. we want to better understand people ’ s expectations and concerns to nd the best way to ful l our mandate of price stability. we will also host an event on the multi - year mortgage measures review later in the year. our proposals include formalising the current industry roundtables by hosting a senior level, cross - sectoral industry stakeholder forum, bringing together key nancial sector industry stakeholders to engage with senior central bank people. we also want to provide an opportunity for the bank to engage with industry and with civil society and consumer representatives at the same time. and we want to enhance our engagement with business representatives and key actors in the economy. i look forward to the hearing views on the proposals set out in the consultation document. conclusion let me conclude by returning to the theme of resilience. in my rst speech as governor, i talked about economic resilience as the ability of an economy to manage change, whether it was to recover from the effects of a shock or managing a more gradual transition to a different state. some of the changes i talked about then – climate and technology in particular – have not gone away. addressing this forum last year, economic growth prospects were favourable but dark clouds were gathering on the horizon. in my remarks then, i said growth was not the same as resilience, and growth did not make us immune to risks. i used the old investment maxim : “ past performance is no guarantee of future results ”. twelve months ago we faced two immediate risks

, universal banking can be a very profitable business, not least because, when banks fail, their creditors are often bailed out by government. anticipating this, investors require a smaller premium to fund the bank. the value of this implicit government guarantee can be significant, especially during market turbulence. ireland in ireland for the past five years banking has not been profitable. this is largely because of the difficulty banks have had in coping with the legacy assets on their books. a large proportion of these assets yield little by way of interest because of the low euro area money market rates to which their yield is contractually set. a large and – at least until very recently – growing, share of the assets is also not fully performing. the irish banks have set aside, and will still need to set aside, sizable provisions to enable them to absorb the inevitable credit losses on some of this portfolio, as it becomes more evident what part of the loans cannot be paid in full, and since the property - related collaterals that backed the loans at the outset no longer suffice as a backstop. faced with these problems, some foreign - owned banks, whose parents also are weakened by the crisis, have decided to withdraw from the irish market, either altogether or from large segments of it. two significant irish - controlled banks – anglo and inbs – have been liquidated. two others, aib and ebs, have been merged. aside from the group of exportoriented banking firms operating in the export - oriented ifsc context, the banking landscape is now much sparser than it was. the ability of irish banks to make their full contribution to financial services needed for the recovery and into the longer term depends on their being fully repaired after the far - reaching damage wreaked in the boom and its aftermath. much has been done here already in terms of recapitalisation, deleveraging and reduction in the cost base. but the case - by - case resolution of impaired loans, both for the sme sector and the household sector, still has a long way to go. at last there are clear indications that the operational processes put in place bis central bankers ’ speeches to accomplish this goal are gaining traction and that the problem can finally be brought under control. what will irish banking look like at the end of the decade ; what would we like it to look like? for the sake of argument i will assume that the legacy issues will by then have been put behind us. official policies and the mandates and