The Central Bank has issued a new policy document entitled "Policy on Country Risk" which sets out the requirements and supervisory perspective of the Central Bank of Ireland with regard to ensuring that credit institutions have adequate policies and processes in place to identify, measure, evaluate, monitor, report and control or mitigate Country Risk in their lending and investment activities on a timely basis.

The Policy applies to all licensed banks and building societies regulated by the Central Bank and includes foreign subsidiaries of Irish credit institutions on consolidation.

The Board of each credit institution is required, on an annual basis, to satisfy itself as to the applicability of the policy in the context of its international lending and investment activities.

The Policy is available on the Central Bank website.