The departure of the UK is particularly important for us in the Central Bank of Ireland given:
- The significant trade and investment links with the UK mean that the Irish economy is more exposed to the risks from the UK’s departure than any others, apart from the UK;
- The largest domestic Irish banks have very substantial UK exposures and any deterioration in the UK economy could impact on their asset quality;
- Dublin is one of the small number of European capitals that is likely to see considerable inward investment of financial sector firms, which will significantly affect the size and complexity of the financial system here;
- In policy fora, Ireland will lose a close ally on certain issues; and
- UK firms passport into Ireland across a range of sectors including insurance and payments services, for example, and for consumers there will be implications when this is no longer possible.