Domestic
Quarterly Bulletin 2023:1 – inflation easing but expected to remain elevated
The CBI published its first Quarterly Bulletin of 2023. On the launch of the Quarterly Bulletin, Robert Kelly Director of Economics and Statistics said: “The global economic backdrop has performed better than previously expected, and the Irish economy is showing continuing resilience. As the year progresses, amidst a tight labour market, household real incomes are expected to recover gradually, supporting underlying growth in the domestic economy. The headline inflationary pressures are easing, however inflation is expected to remain elevated in 2023 and 2024, albeit at lower rates than previously forecast.”
The report contained the following findings:
- Inflation remains high but has begun to ease, with both headline and core inflation now expected to be lower than previously forecast in 2023, at 5% and 3.5% respectively.
- Interest rates on loans to firms have increased in line with other euro area countries, while interest rates on new mortgages have been slower to react.
- Household lending continued to recover from the pandemic and new mortgage lending increased by 26% over 2022, with non-mortgage household lending representing a 27% increase on 2021.
- The unemployment rate is expected to remain low, averaging 4.4% out to 2025, with tight labour market conditions continuing.
- Modified domestic demand is forecast to grow by 3.1% in 2023, 2.9% in 2024 and 2.6% in 2025.
European
EBA publishes new set of indicators to identify potential causes of consumer harm
On 28 March 2023, the EBA published a new set of indicators, which aim to identify consumer detriment arising from misconduct of financial institutions offering retail banking products in the EU. The indicators cover the banking products in the EBA’s consumer protection scope. This includes mortgage credit; consumer credit; deposits; payment accounts and payment services.
The indicators aim to provide information to help the EBA and national competent authorities to prioritise their regulatory and supervisory work in the area of consumer protection.
EBA publishes a consultation paper on Draft Implementing Technical Standards Amending Regulation (EU) 2021/453 with regard to the specific reporting requirements for market risk (EBA/CP/2023/03)
On 21 March 2023, the EBA published a consultation paper on draft implementing Technical Standards Amending Regulation (EU) 2021/453 with regard to the specific reporting requirements for market risk. The consultation paper sets out the proposals for expanding the fundamental review of the trading book (FRTB) reporting framework.
As the full implementation of the FRTB in the EU approaches the consultation paper sets out proposals for the expansion of the FRTB reporting framework. The proposals complement the already existing reporting requirements with a comprehensive set of templates to capture details on the instruments and positions in scope of the A-SA, as well as templates to capture summary and detailed information on the instruments and positions in scope of the alternative internal model approach (A-IMA).
The consultation will remain open until 20 June 2023.
