In the context of the six-month review of the Guarantee Scheme, consideration is being given to adapting the scheme to facilitate longer-term bond issuance. In addition, the Government has announced its intention to examine proposals to mitigate the impact of risks related to specific exposures on the assets side of banks’ balance sheets, in line with ongoing work on this issue at European level.
The role of the Central Bank The Central Bank has responded to the unfolding crisis in a number of ways. Provision of liquidity The Irish central bank, on behalf of the Eurosystem, and along with central banks globally, has been providing significant volumes of liquidity to the banking sector, since major financial stress began to become evident in autumn 2007.