It plays an important role in economic activity but – like all sources of financial intermediation – it can also become a source of risk. 2/4  BIS central bankers' speeches  The pandemic exposed global financial interlinkages and tested the resilience of some segments of market-based finance. And, quite rightly, there is growing international focus on strengthening the resilience of non-bank financial intermediation.
Global interdependencies stress the need to implement global standards in a timely and consistent way. The value of Basel III and the new International Capital Standard for insurers cannot be overstated. The Central Bank of Ireland is an active participant in international standard setting bodies, and a strong supporter of the faithful implementation of their outputs.