Have sufficient financial resources, including under a plausible but severe stress; 2. Have capitally accretive business models; 3. Are well governed, with effective risk management and control arrangements in place, commensurate with their size, scale and complexity; and 4. Can recover if they get into difficulty, and if they cannot, are resolvable in an orderly manner without significant externalities or taxpayer costs.
As one of my predecessors described, delivery of these outcomes requires “assertive, riskbased supervision underpinned by the credible threat of enforcement2.” The continued work and enhancement of prudential regulation is a continuum of the step changes made in supervision in Ireland and internationally since the onset of the global financial crisis.