Central Bank Updates Supervisory Approach

The Central Bank of Ireland (the Central Bank) has recently published an updated version of its “Our Approach to Supervision” document (the 2026 Document), which clarifies the Central Bank’s approach to its risk-based supervision of regulated firms following the introduction of a new supervisory approach in 2025 (the 2025 Document).

Although the Central Bank’s safeguarding outcomes and supervisory principles remain unchanged, the 2026 Document provides welcome clarification on how its supervisory approach will operate in practice, particularly in light of the Central Bank’s latest Regulatory and Supervisory Outlook.

Most notably, the 2026 Document clarifies the distinction between “sectoral supervision” and “close & continuous supervision”, and elaborates on the Central Bank’s approach to risk identification and prioritisation, the supervisory actions and interventions it may use to prevent or mitigate prioritised risks, and the development of multi-year supervisory strategic