Central Bank reinstates capital buffer amid economic uncertainty

Banks were ordered to hold more capital with warnings that a protracted war in Ukraine could lead to further downward revisions to the global growth

Central Bank Governor Gabriel Makhlouf said Ireland has been left particularly exposed by the war in Uktraine.

The Central Bank announced it will gradually increase its main tool to safeguard Ireland’s resilience, in terms of bank capital, as a response to the economic pressures the country is facing.

The regulator’s Counter-Cyclical Capital Buffer (CCyB) tool will increase to 0.5%, with plans to build to 1.5% by mid-2023.