Central Bank of Ireland sets out three priorities to expand retail investment at the Savings and Investment Forum

The Central Bank of Ireland published opening remarks by Governor Gabriel Makhlouf for the inaugural Savings and Investment Forum, framing the Forum as part of efforts to enable greater retail participation in capital markets in Ireland and to support the EU Savings and Investments Union agenda. He argued that mobilising household savings into investment is important to complement bank financing and support broader investment needs across Europe. Makhlouf highlighted that euro area deposits are nearing EUR 10 trillion, while Irish household wealth is concentrated in housing at roughly two-thirds of net wealth and around EUR 170 billion is held in deposits in Irish banks. He pointed to low direct retail market participation, with Irish households holding 2.3% of financial assets in direct investments such as listed equity and debt versus an EU average of 7.5%, and direct holdings in investment funds just above 2.2% despite over EUR 5 trillion in investment fund assets under management domiciled in Ireland. The remarks identified persistent psychological, knowledge and ecosystem barriers, and set out three “ingredients” for increasing participation: suitable products, financial education and advice, and strong consumer protection, including a need to balance product flexibility with sufficient standardisation for comparability and lower administrative burdens.