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The bank regulates the financial sector, focusing on stability, resolutions in credit institutions, and proper and effective regulation of financial institutions and markets, ensuring that customers are protected (Central Bank of Ireland, 2018h). The Central Bank of Ireland performs many of their regulatory and supervisory activities through their authorization procedures and risk-based approach supervision (Central Bank of Ireland, 2018h). The Central Bank of Ireland regulates financial institutions through an authorization process, strict policies, and close supervision to ensure that the institutions are operating properly and following all of the policies that are in place (Central Bank of Ireland, 2018h). The United States Federal Reserve is also responsible for overseeing financial institutionsin the nation. The Federal Reserve monitors, inspects, and examines institutions to ensure that they are complying with the policies that have been set forward by the Federal Reserve (Board ofGovernors of the Federal Reserve System, 2018g). The Federal Reserve is responsible for ensuring that the financial institutions are operating in a safe and sound manner (Board of Governors of the Federal Reserve System, 2018c). They do so through a tailored system of supervision that is customized for each institution based on the complexity and expansiveness of the individual institution (Board of Governors of the Federal Reserve System, 2018c).
THE CENTRAL BANKS10The United States Federal Reserve and the Central Bank of Ireland play similar roles in regulating their financial industries. They both supervise the institutions actions to protect the nations consumers. The banks also use similar tools in their monetary efforts including open market operations and reserve requirements to impact their nations economic health and to promote financial stability.The United States Federal Reserve and the Central Bank of Ireland operate in very similar, yet different manners. They each have their own areas of strength and weakness, however, overall, they both have the same goal of providing economic stability to their people. The United States could learn a bit from the Central Bank of Ireland if it was to collaborate with some of the other world banks a bit more, much like the Central Bank of Ireland does through the Eurosystem. The Federal Reserve could promote more growth and stability by working with other world banks, especially in times of economic downturns. Perhaps the greatest lessons that the banks can teach one another come about during periods of economic downfalls, as the world struggles to pick itself up and provide stability for consumers all around the world. If banks wereto collaborate and work together more, perhaps some of the economic downturns would not occur, or would not be as significant. Currently, however, both of the banks are working hard to keep their economies growing and stable, as they are both experiencing some of the lowest unemployment rates in several decades. The Central Bank of Ireland’s collaboration with other