Pearse Doherty (Donegal South West, Sinn Fein)
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61. To ask the Minister for Finance the action he is taking in response to the recent report from Financial Stability Board in Switzerland which described how improved monitoring of shadow banking here will require increased regulatory oversight and co-ordination across jurisdictions; and if he will make a statement on the matter. [40990/15]

Michael Noonan (Limerick City, Fine Gael)
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I take it that the Deputy is referring to the Financial Stability Board's (FSB) Global Shadow Banking Monitoring Report which was published on 12 November, 2015. This report presents the results of the fifth annual monitoring exercise using data as of end 2014 for 26 jurisdictions - including Ireland for the first time - as a specific, detailed case study.  I welcome the involvement of the Central Bank in this exercise and in their engagement with the FSB.

It is important to highlight that of the €3,281 billion identified in the report as being outside the Irish banking system, some €2,783 billion (85%) is subject to other forms of financial regulation and/or reporting for the funds, insurance, securitisation and pension sectors.  The report also indicates that the majority of the assets and liabilities of the entities involved in these activities are located outside Ireland.  However, the exercise highlights the need for international co-operation in terms of monitoring, data sharing and awareness to prevent the build up of global systemic risks.  My Department continues to enhance the international financial services regulatory agenda working with the EU and other jurisdictions and international bodies.

I note that the case study on Ireland highlights the success of Ireland's International Financial Services sector which supports some 35,000 jobs across Ireland. The success of the sector has been driven by global specialisation in key fields such as funds management and administration, insurance and reinsurance and brokerage, efficient listing processes and the availability of highly qualified staff and professional support services.

The Central Bank remains committed to seeking and communicating further detail on the nature of the International Financial Service activities listed or domiciled in Ireland and is engaged in improving data collection, levels of awareness and engagement with international regulators and bodies.