Minister’s Brief

Recommendations

Info

The Assistant Secretary is one of the two Irish representatives on the Financial Stability Board’s (FSB) European Consultative Group (the other is the head of policy and risk at the Central Bank). The Department’s Compliance unit is developing a comprehensive Compliance Framework to be the first to fulfill the commitment of the Civil Service Reform agenda. This programme will include formal training and has been embedded in PMDS requirements. The oversight of the IFS2020 strategy is also managed by this team. The focus that developed around this strategy (which is coordinated through the Department of An Taoiseach) has been transformational and has increased the focus on the opportunities in developing the international financial services agenda. There are several key areas on which this Department leads – tax policy and EU and domestic financial services legislation – that drive this strategy. Recent notable developments have been the establishment of a third country bank branch and a Government decision to approach the Chinese authorities in relation to renminbi quotas. Detail: Risk and Stability Policy and Management The Department of Finance risk management framework consists of a Risk Committee - a Subcommittee of the Executive Board - a Risk and Stability Team and line Divisions who are responsible for the management of risks in their area. The Risk and Stability team comprising 4 people within the Department is responsible for risk identification, reporting and management. The area of financial stability is a key area of renewed focus and the team work with the Central Bank (who are, under current legislation, the body responsible for management of financial stability in the State) and the NTMA to improve and cross-reference risks held in their respective risk registers. There is good (and improving) informal dialogue that proves a very useful base for discussing issues of shared interest such as the National Risk Assessment (led by the Department of An Taoiseach), the Principals Group and other European and international fora (such as the ESRB, ECB, FSB). The role of risk and stability team The Risk and Stability team is responsible for ensuring that a risk culture is embedded in the Department, maintains the Department’s risk register and determines the parameters for escalation of risk/further examination. The team generates the information to support the work of the Department in ensuring a better understanding of possible financial, strategic and operational risks, which is complimentary to the work of other divisions. The risk team is responsible for: • the maintenance and development of appropriate risk reporting structures Page 138 of 184
• development and maintenance of risk registers; • reporting significant risks to the Risk Committee and the Executive Board • development of detailed quarterly reports with other divisions on significant risks • reporting to the Minister as appropriate on strategic and financial risks The team engage in daily monitoring of risk events and this along with the analysis of trends that the risk team undertake provides a top down view of risks, which complements the bottom up assessment of risks that each division reports quarterly in their risk register. This comprehensive analysis feeds into the National Risk Assessment of strategic risks facing Ireland coordinated by Department of An Taoiseach In relation to financial stability, the team work at a ‘macro’ level – seeking to determine trends and changes in financial markets that could affect Ireland. The team has created a Financial Stress Index (FSI) to measure levels of financial market stress/volatility in Ireland. The risk and stability team regularly reports on the FSI, and is currently researching ways to improve the FSI in particular by incorporating more ‘realeconomy’ indicators in the FSI. Furthermore the risk and financial stability team is finalising the development of a suite of indicators for a Financial Stability ‘early warning system’. This could complement the results of the FSI and work as a basis to improve the national framework through the National Risk Assessment and National Economic Dialogue. The team produce a morning “market report” which comments on financial market issues and has wide circulation. The team also consider one-off developments such as recent financial market turbulence or events in China. The team meets with the NTMA and Central Bank to discuss and share information on matters of financial stability. The head of the Division participates in discussions on financial stability within the Principal’s Group. The Department has consulted both the NTMA and the CBI on our financial stress index, our assessment of financial stability in the National Risk Assessment and our scenario analysis of potential shocks to growth. The team engages with the Central Bank in its bi-annual assessment of financial stability in Ireland in Macro Financial Review providing comments and proposals for changes to the document. The Minister is also made aware of the content of the report and the views of the Department on financial stability risks. The risk and financial stability team is working with banking division on a proposal to enhance the work of the Principal’s Group in the post crisis environment. In its macro role - the risk and financial stability team is also engaging with the banking division who are coordinating the IMF Financial Sector Assessment Program (FSAP) for the Department. The risk unit is active across the department and contributes to the different policy issues that arise especially through the Policy Committee. Page 139 of 184
Page 1 and 2:
Minister’s Brief 2016 s Page 1 of
Page 3 and 4:
3.2.1.1 Policies on Mortgage Arrear
Page 5 and 6:
1. Introduction For the purposes of
Page 7 and 8:
2.1 Economic and Fiscal Directorate
Page 9 and 10:
2.2 Finance and Banking Directorate
Page 11 and 12:
3. Detailed Briefing Page 11 of 184
Page 13 and 14:
3.1.2 Economic Division Description
Page 15 and 16:
Detail: Economic Outlook Pr
Page 17 and 18:
3.1.2.2 Microeconomic analysis unde
Page 19 and 20:
changes in the relevant tax base) a
Page 21 and 22:
3.1.2.3 Economic coordination inclu
Page 23 and 24:
3.1.2.4 Budgetary/fiscal policy, go
Page 25 and 26:
Assessment of compliance with SGP o
Page 27 and 28:
was a deviation from the fiscal rul
Page 29 and 30:
tax, followed by personal income ta
Page 31 and 32:
Tax Strategy Group - What Does It D
Page 33 and 34:
Detail: Income Tax Policy Income Ta
Page 35 and 36:
Credit in 2014 - that credit was of
Page 37 and 38:
INCOME TAX INCENTIVES Agri-Taxation
Page 39 and 40:
Marine taxation In Budget 2016, a r
Page 41 and 42:
Detail: Indirect Tax Policy Tax Hea
Page 43 and 44:
outcomes, then it was proportionate
Page 45 and 46:
More fundamental threats to tobacco
Page 47 and 48:
3.1.3.4 Finance Bill co-ordination,
Page 49 and 50:
ise in both equity markets and prop
Page 51 and 52:
Tax Head 2007 (€m) 2013 (€m) 20
Page 53 and 54:
3.1.3.5 International taxations, co
Page 56 and 57:
fully in line with the new OECD req
Page 58 and 59:
3.1.5.1 EU Economic Governance issu
Page 60 and 61:
At EU level, the Governance section
Page 62 and 63:
3.1.5.2 EU-IMF Post Programme Monit
Page 64 and 65:
2. EU Funding Mechanisms/ Programme
Page 66 and 67:
Detail: The EU Strategy Unit manage
Page 68 and 69:
3.1.5.4 International Relations Uni
Page 70 and 71:
3.1.5.5 Permanent Representation of
Page 72 and 73:
3.2 Finance and Banking Directorate
Page 74 and 75:
3.2.1.1 Policies on Mortgage Arrear
Page 76 and 77:
available is €1.8 million. Initia
Page 78 and 79:
3.2.1.2 Policies on Central Bank po
Page 81:
deemed necessary, it may be prefera
Page 84 and 85:
Detail: Key Initiatives to achieve
Page 86 and 87:
5. Majority of credit requests cont
Page 88 and 89: 3.2.2 Financial Services Division D
Page 90: A further group is reviewing the re
Page 93 and 94: financing would be available to cov
Page 95 and 96: o Cumulative impact of financial le
Page 97 and 98: 3.2.2.2 National and EU policy and
Page 99 and 100: Securities The draft EU Prospectus
Page 101 and 102: In addition a full view of the fina
Page 103 and 104: "packaging", wrapping or bundling t
Page 105 and 106: 3.2.3 Shareholding Management Unit
Page 107 and 108: 3.2.3.1 State’s Banking Investmen
Page 110 and 111: 3.2.3.2 State’s shareholding in A
Page 112: sheet continues to contract, albeit
Page 118 and 119: 3.2.3.4 NAMA Specialist - Declan Re
Page 120 and 121: Detail: NAMA Background As part of
Page 123 and 124: 3.2.3.5 IBRC (in special liquidatio
Page 125 and 126: In February 2013 the Irish Bank Res
Page 127 and 128: 3.2.3.6 State’s shareholding in P
Page 129 and 130: PTSB’s return to profitability ha
Page 131: Credit Union Restructuring Board (R
Page 134: 3.2.3.8 Management of all legal mat
Page 137: 3.2.4.1 Risk and Financial Stabilit
Page 141 and 142: epresented and an Industry Advisory
Page 143 and 144: 3.2.4.1 Management of FoI and PQ pr
Page 145 and 146: Page 145 of 184
Page 147 and 148: 3.2.4.1 Liaison with the Attorney G
Page 149 and 150: 3.2.4.2 Management of the Accountan
Page 151 and 152: Future Developments The vote accoun
Page 153 and 154: 3.2.5 International Financial Insti
Page 155 and 156: Key Points: International Monetary
Page 157 and 158: with the delegation led by Second S
Page 159 and 160: assistance to the developing world.
Page 161 and 162: In addition to capital contribution
Page 163 and 164: would be the Minister for Finance o
Page 165 and 166: 3.3 Corporate Page 165 of 184
Page 167 and 168: supported by OPW and a number of ex
Page 169 and 170: 3.3.2. Corporate Affairs Descriptio
Page 171 and 172: member, the Department has a Busine
Page 173 and 174: ability of both electronic files an
Page 175 and 176: 3.3.3. Human Resources Division Des
Page 177 and 178: Detail: 1. Organisational Structure
Page 179 and 180: effectively to improve and deliver
Page 181 and 182: The Department is currently reviewi
Page 183 and 184: Erosion of income tax base did not
show all

Minister’s Brief

Create successful ePaper yourself

Delete template?

Save as template?