Over the past two decades the Irish economy has been transformed in response to a series of significant global events, from the current conflict in Ukraine, cost of living crisis and rising interest rates to COVID-19, Brexit and the economic crash. Ireland has risen to these challenges and it has resulted in a robust and resilient economic environment, thanks in no small part to the role that government, regulators and supervisors have played in rolling out responsive fiscal, monetary and regulatory measures.
Successful diversification has also established Ireland as a global and EU hub for international finance, with a strong focus on international banking and investment firms. Ranked as the 6th largest exporter of financial services in the world and the 19th largest international banking sector globally, Ireland now hosts operations for 17 of the top 20 global banks.

The international banking and investment sector have located specialties in green finance, fintech, capital markets, payments and innovation in Ireland and makes a significant contribution to the Irish economy, through both employment and taxation. Corporation Tax represented over 22% of Ireland’s total net receipts in 2021. The financial services sector is the third largest contributor to corporation tax contributing 15% of the overall amount. Our international banks are also contributing substantially to employment across the country. There were 52,800 people employed across the financial services sector at the end of 2021 representing a growth of 6,200 from the pre-COVID end of 2019 figure of 46,600 or 13.2%.

This compares very favourably with the CSO Labour Force Survey which shows an increase of 6.3% over the same period in total employment across the economy. At the end of 2022 FIBI member banks and investment firms which generate highly skilled, high value-added and high-salaried jobs, employed over 14,200 people, up from a figure of 12,200 at the end of 2019. This is an increase of 16.4% and considerably higher than the growth rates recorded in the wider international financial services sector and jobs in the overall economy.

Since the UK’s departure from the EU, the sector has witnessed a significant growth of new entrants into the Irish market, particularly in highly skilled and high value-added capital markets activities. This has also resulted in an influx of new talent with the relocation of key personnel and senior management to Ireland, which in turn is helping to develop and grow specialised skills within our indigenous work force, increasing the sector’s talent pool and Ireland’s competitiveness and attractiveness for further investment and growth.

The Government continues to prioritise the sustained success of the international financial services sector. Working in partnership with industry, academia, and key stakeholders, the State supports the sector’s ongoing growth. FIBI works to ensure that its members are central to the partnership process. The sector has demonstrated its ability to grow and continue to develop and evolve in line with changes in the regulatory environment, economic cycles and industry trends. This close relationship between the public and private sector has ensured that the sector has exhibited a resilience in the face of major systemic crises and an ability to adapt and grow.

While there will continue to be challenging times ahead for the sector, given current economic and market conditions, the single greatest challenge is undoubtedly that presented by climate change. According to a members’ survey conducted by FIBI in 2022, 75% of international banks in Ireland are actively involved in their group’s implementation of sustainable finance and 56% see opportunity for Irish operations to take global leadership in this area. The international banking sector in Ireland is well positioned to help businesses and customers transition to a low carbon economy and ensure that Ireland meets it climate targets. At the same time, the transition also offers great opportunities for the sector, which FIBI members are keen to develop. Our collective ambition is to make Ireland a key hub for sustainable finance over the coming decade.

FIBI will continue to work closely with Government and key stakeholders in the development of its international financial services strategy so that Ireland remains a key EU financial centre in the year going forwards. Given the advantages Ireland has in terms of access to the EU single market, it’s close ties with North America, a competitive tax environment, a common law jurisdiction and the availability of a large pool of technology and software engineers, it is very well positioned to continue growing in the years ahead.