Given the international nature of financial markets and the increasingly international aspects of the Irish financial services sector, we also have a responsibility to consider the broader impacts of the financial system in co-operation with our European peers2. Being part of this complex European financial services ecosystem, the Central Bank plays an active role in the European framework of regulation and supervision.
These measures have positive implications in terms of project design, enabling adequate financing for fiscal interest subsidy and risk compensation of student loans under difficult fiscal situation, thus providing incentives for financial institutions to engage in local student loan business, a breakthrough in the building of a long lasting mechanism of local student loans.