{
  "id": 4137498,
  "title": "Reinforcing the foundations - openness through resilience in the face of change",
  "url": "https://urgent.news/2026/08/10/reinforcing-the-foundations-openness-through-resilience-in-the-face",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-10T00:00:00.000Z",
  "source": {
    "name": "BIS Central Bank Speeches",
    "slug": "bis-central-bank-speeches",
    "url": "https://www.bis.org/speeches/20260810-reinforcing-foundations-openness-through-resilience-face-change"
  },
  "original_language": "en",
  "account": "Good morning, I am pleased to be present and I extend my gratitude to Andrea for the opportunity. I eagerly anticipate our discussion and welcome your input. Before we delve into the details, I would like to share some insights regarding the current landscape. In my recent address, I outlined several significant structural shifts in the global environment and their impact on the financial system, particularly the funds sector. Today, I will revisit some of these points before discussing the supervisory work undertaken and the upcoming policy initiatives. The first point I wish to emphasize is the rapid pace and magnitude of change. Over the past decade, the Irish funds sector has expanded substantially, tripling in size from €1.6 trillion to €5.6 trillion in assets, and the number of authorized investment funds has surged by nearly 50%, from 6,000 to 9,000. This growth has accompanied a series of global disruptions, including Brexit, the Covid-19 pandemic, Russia's invasion of Ukraine, and various geopolitical-driven market events, such as the LDI crisis in 2022 and the market turmoil in April 2023. The last 18 months have witnessed an accelerated pace of geopolitical realignments and economic fragmentation, which have further complicated the landscape. Alongside these geopolitical transformations, we are also experiencing a swift acceleration in technological advancements, particularly in frontier AI models. While these developments hold immense potential for societal progress, economic growth, and financial system enhancement, they also bring considerable risks and challenges. It is imperative that the financial services industry responsibly harness these opportunities while proactively managing the associated risks. Despite the constant nature of change, I would like to highlight two key characteristics. First, these swift transformations are occurring alongside substantial structural changes, such as climate and demographic shifts, which, though seemingly less pressing, are equally profound. The challenge of addressing these long-term issues is compounded by the near-term shocks and upheavals, potentially exacerbating the costs of inaction for future generations. Second, the speed, significance, and interplay of these changes have widened the range of possible outcomes, making the world more uncertain, unpredictable, and raising questions about the true nature of tail risks. Regulators and financial institutions alike must grapple with this challenge. Now, let us turn to the second theme: resilience in the face of change. As I previously mentioned, resilience is increasingly vital, necessitating robust foundations and a foundation of strength to navigate and endure these challenges. This entails not only financial resilience, including liquidity and leverage-related risks, but also operational resilience, and the critical importance of resilient governance and oversight structures that enable effective decision-making, particularly during times of stress. True governance is demonstrated by its performance under adverse conditions. It is not merely about having documentation in place; it demands practical implementation, testing, and the cultivation of a culture that embraces challenge and recognizes complacency as a risk. The third theme I wish to underscore is our response to this evolving world. We must not merely react but proactively adapt to the shifting environment. This includes integrating geopolitical risks into our risk management frameworks, building resilience against a more complex and unpredictable risk landscape, and continuously advocating for openness while being strategic in preserving its benefits in a fragmented world. For a global sector like Ireland's funds sector, this is particularly crucial. You exemplify the advantages of open global financial markets. It is through your resilience, strong governance, and robust regulation that these benefits will be sustained for investors and the European economy. Additionally, we must adapt to the evolving nature of resilience, keeping pace with the changing risk landscape brought about by geopolitical shifts and technological advancements. This involves addressing potential tail risks, such as cyber and sabotage threats related to geopolitical tensions, and the impact of frontier AI models on cyber security and overall resilience. Finally, ensuring that governance and risk management capabilities keep pace with the changing world is paramount. This encompasses maintaining accountability and governance effectiveness, regardless of the delivery method of financial services, especially as we increasingly adopt and deploy advanced AI technologies. While AI presents powerful tools, it is ultimately human decision-making that governs their use.",
  "summary": "Speech by Ms Mary-Elizabeth McMunn, Deputy Governor of the Central Bank of Ireland, at PWC, Dublin, 23 July 2026.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}