Banking and Payments Federation Ireland (BPFI) said the current framework is confusing, inconsistent and costly, with Irish rules often gold-plated beyond EU standards. It warned this can deter new entrants, push firms to relocate, and leave Irish institutions at a competitive disadvantage.

In a report submitted to the Central Bank and Department of Finance, Regulating for Growth – A Roadmap for Simplification, BPFI set out 52 recommendations to create “more effective and more efficient” regulation. The proposals, it stressed, are not aimed at weakening capital or liquidity requirements but at cutting unnecessary complexity.

The federation called for a “local single rulebook” to clarify supervisory expectations and a more transparent approach to proportionality, so that rules are tailored to a firm’s size and risk profile rather than applying a “one-size-fits-all” model.

BPFI chief executive Brian Hayes said: “The banking sector in Ireland fully recognises the financial stability and resilience that has been hard won by firms and our regulators since the global financial crisis. After a decade and a half of intense EU regulatory reform however it is time for a reset.

“As highlighted by our report today, what we want to see is a common EU rule book applied consistently and proportionately across the Single Market. It is equally important to note that this report does not argue for deregulation – no bank operating in Ireland is arguing for light touch regulation. We also fully recognise that national discretions, capital add ons and gold plating are not unique to Ireland. They remain a feature of EU fragmentation.”

Ireland currently hosts 35 banks, including AIB, Bank of Ireland and PTSB, alongside smaller wholesale institutions.

Earlier this year the Central Bank said it would engage “proactively” on regulatory simplification but warned that any changes must not compromise financial stability, resilience or consumer protection.

Deputy governor Mary-Elizabeth McMunn welcomed industry input but cautioned that “one person’s unnecessary burden can often be another’s important protections.” She said lessons from the financial crisis must not be forgotten, adding that the bank’s mandate remained focused on safeguarding consumers and the wider economy.