, i can mention that, in addition to the enforcement role, we have just announced the creation of new senior level positions with responsibility for markets supervision and policy and risk. supervision will be calibrated to the risks posed by the different firms in the sector and will involve applying the existing rule - book, strengthened as necessary to plug the holes revealed by the crisis. in particular, we will not be slow to implement new stronger rules, being developed as we speak, by international bodies such as the basel committee. despite the extensive powers already available to the regulatory authorities, it would be useful and appropriate to have clarity on a number of additional points ; these are being discussed at present with the department of finance with a view to their inclusion in the proposed legislation restructuring the central bank. one particular area relates to the requirements of confidentiality, which ( as they are currently being interpreted ) seem to go well beyond what is necessary or appropriate for the purpose of ensuring privacy of customers and commercial interests. as things stand, the regulatory staff can end up appearing passive and defensive when called to speak on specific issues in public. a final aspect of safety and soundness to which i would like to refer is the admission of large and complex export - oriented firms into the irish market. i welcome the participation of foreign - owned firms – both those aiming to supply the domestic market and those that are export - oriented – they provide competition and business opportunities. but the crisis has revealed the reputational risks to ireland of having a failure in such an entity. this means that we have to redouble our efforts to ensure that only sound institutions are allowed to enter and that they are comprehensively supervised to ensure that they continue to be sound. i will certainly not allow ireland to become a soft option for firms or activities that are no longer welcome elsewhere. this means more supervisory staff with the necessary skill levels ; these can be paid for by a levy on the supervised firms ( i think we should move towards a 100 % chargeback basis ). i also feel, though, that specific steps need to be taken to ensure that there is no expectation that the state would come in to take exceptional steps to rescue such entities. 3. consumer protection consumer protection cannot and will not be ignored in the regulatory structure. failures here are not as spectacular as a solvency crisis, but can be as damaging to the affected consumers. there will be no downgrading of this aspect of the regulatory work. the statutory codes of conduct for mortgage and sm

could help reduce the depth of fragmentation. we should avoid excessively weakening europe ’ s long - established state aid rules, as reduced foreign competition will ultimately undermine reshoring policies by giving local firms greater market power. it could also lead to demands for support in other industries, which are not the focus of reshoring initiatives. our analysis also indicates that if locally produced inputs are inferior to their imported counterparts, the economic costs of reshoring could be substantial. as such, policymakers should focus localisation policies on goods where there is already an existing comparative advantage in production. or, at least, where the distance from the technological frontier is not too large. and, with regards to friend - shoring, policymakers should seek greater ties with regions that are not potential competitors for goods. for example, many countries have similar aims to europe for increased production of semi - conductors. this competition may induce trade tensions in future. finally, perhaps the most important issue for policymakers is to understand the trade - offs and to be able to articulate them clearly when explaining their choices to the wider community. resilience, of course, matters but ultimately, interconnectedness has given the world prosperity, opportunity and stability, notwithstanding its challenges. so we all have to be vigilant and avoid turning the reasonable quest for greater autonomy into an excuse to retreat behind borders. all of us need to understand, be aware of and manage the risks posed by the quest for autonomy and having greater – or indeed taking back – control. a focus on building resilience while maintaining vigilance, understanding and awareness will help us avoid the risk of sleepwalking into a world of diminished expectations and the relative impoverishment of future generations. thank you for your attention and i look forward to an engaging discussion. [ 1 ] i would like to thank daragh clancy and robert kelly for their contribution to my remarks. [ 2 ] makhlouf, g. ( 2021 ), “ birth, growth and towards maturity : macroprudential policy in ireland ”, remarks at the esri, 8 november 2021. [ 3 ] antras, p. ( 2020 ), “ de - globalisation? global value chains in the post - covid - 19 age ”, nber working paper no. 28115. [ 4 ] cigna, s. et al. ( 2022 ), “ global value chains : measurement, trends and drivers ”, ecb occasional paper no. 289