irish non - bank financial sector figure 1 shows the sectoral composition of the irish non - bank financial sector. in addition to significant insurance and pension fund sectors, ireland hosts entities ( mainly investment funds and securitisation vehicles ) that support a large amount of non - bank financial intermediation ( moloney and murphy 2013 ). bis central bankers ’ speeches figure 2 shows that irish - resident entities account for a sizeable proportion of funds activity in the euro area, such that ireland plays an important role as an international financial centre for the investment funds industry. bis central bankers ’ speeches from a domestic perspective, it is important to understand the linkages between the activities of these sectors and the domestic economy and any potential risks to the domestic jurisdiction. in fact, figure 3 shows that irish - resident collective investment vehicles : ( i ) have a proportionately low exposure to irish - resident assets ; and ( ii ) are owned by relatively few irish - resident investors. furthermore, these data overstate the ultimate exposure of irish residents, since these include irish - resident entities that are owned by foreign investors. put another way, irish - resident collective investment vehicles are largely invested in offshore assets and are mostly owned by foreign investors. ireland ’ s role in global financial intermediation means that traditional interpretations of balance of payments flows are not too helpful and the patterns of ultimate ownership are quite different to those suggested by the residence of investment vehicles. put differently, the geography of risk also matters. contagion can travel across borders because of the international nature of their assets and liabilities. stress arising elsewhere can affect irishresident investment vehicles, and vice versa. it follows that the central bank of ireland has a role not only to understand linkages to the domestic economy but also to work with international peers in the oversight and supervision of non - bank financial intermediaries. bis central bankers ’ speeches in related manner, figure 4 shows the currency composition of the money market funds sector. this sector is dominated by sterling - and dollar - denominated funds, with only a minor share for euro - denominated funds. this pattern further underlines the international, crossborder nature of the irish - resident funds sector. bis central bankers ’ speeches effective monitoring is a key pillar of good regulatory engagement ( moloney and murphy 2013 ). the central bank of ireland has led the way in collecting detailed data on collective investment vehicles and continues to prioritise initiatives that make data collection more efficient and effective (

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