Market-based finance The emerging risk I want to mention is the growing size of the market-based finance sector, both here in Ireland but also across the world. The relative size of the sector in Ireland to the domestic economy is among the largest globally and it has a predominantly international focus.
It is dominated by investment funds and money market funds, which account for around two-thirds of total assets. Market-based finance provides a valuable alternative to bank financing for many businesses and households, supporting economic activity. But these activities may also give rise to financial vulnerabilities, which need to be understood, monitored and addressed.