Central Bank of Ireland Financial Stability Review 2025:II identifies elevated risks from global market disconnects and domestic fiscal fragility (centralbank.ie)

• Global stretched valuations and compressed credit spreads create risk of sharp corrections; private credit underwriting concerns intensify.
• Ireland's reliance on US FDI and corporation tax receipts poses medium-term downside risks; sovereign finances fragile.
• Households and businesses resilient, but house price inflation high; macroprudential buffers maintained and extended to property funds.

"The Central Bank of Ireland's Financial Stability Review 2025:II assesses risks to the Irish financial system. Global equity valuations are stretched, corporate bond spreads are compressed, and private credit lending standards show warning signs. The Irish economy is particularly exposed due to openness and reliance on US FDI. Government finances are overly reliant on volatile corporation tax receipts. Households and businesses remain resilient, but house price inflation is high. Macroprudential policy has been adjusted, including a 1.5% countercyclical capital buffer and new measures on property funds."