The Central Bank's Deputy Governor Cyril Roux is to leave the bank in April.
He has held the position of Deputy Governor (Financial Regulation) since October 2013.
In a statement, the Central Bank said Mr Roux will join the private sector in September 2017.
Central Bank Governor Philip Lane said Mr Roux drove critical reforms of the way financial regulation in Ireland is conducted.
This includes the successful integration in the Single Supervisory Mechanism of banking supervision in the euro zone, and the transformation of the bank's insurance supervisory approach.
Under his leadership, the Central Bank also launched its biggest programme ever of consumer redress, the on-going mortgage tracker review.
The Central Bank has struggled to retain some key staff amid a recovery in the financial sector that Mr Roux noted in October had increased the gap between the pay someone can get working for the bank and working in the private sector.
The former French regulation official's departure comes as the Central Bank deals with over 100 enquiries from firms considering moving operations to Dublin as a result of Britain's vote to leave the European Union.
"Together with his invaluable contributions to our macro-prudential and financial stability mandates, and to the running of the bank as a whole, Cyril Roux has led Financial Regulation in Ireland with great strength and distinction and leaves a secure legacy," Professor Lane said in a statement today.
"The unstinting support of the Central Bank's Commission, Governor Honohan and Governor Lane have enabled me and my colleagues to continue the work commenced at the beginning of the decade to reform our financial regulation in order for the bank to discharge ever more fully its mandate to protect consumers and contribute to financial stability," Mr Roux said.
"The bank is a strong institution where highly dedicated and qualified staff work every day in the public interest, and I will sorely miss them," he added.
Finance Minister Michael Noonan said that Mr Roux has been to the fore in driving significant changes in the financial regulatory landscape during his term at the Central Bank and contributed to the overhaul of regulation, supervision and resolution regimes.
"Mr Roux was instrumental in delivering the wholesale changes introduced under the Single Supervisory Mechanism and the regulations on Banking Capital Requirements," he added.
Fianna Fáil Spokesperson on Finance Michael McGrath said the departure of Mr Roux is another reminder of the difficulties faced by the Central Bank in attracting and then retaining senior personnel.
Mr McGrath commented: “I wish Cyril Roux every success in his new role in the private sector and he is to be thanked for his very significant contribution as Deputy Governor and Head of Financial Regulation at the Central Bank over the past number of years.
“On a wider level, Mr Roux’s departure again brings into sharp focus the challenge faced by the Central Bank in attracting and retaining senior personnel with specialist skills and experience. In truth, the issue seems to be that the Central Bank cannot compete with the remuneration arrangements offered by the private financial services sector. Given the constraints on public pay, there is no easy answer to this problem but we have to acknowledge that the level of vacancies and the turnover rate within the Central Bank also comes at a potential price.
“Last December, I was informed in the Dáil of 149 staff vacancies in the Central Bank including a 12% vacancy rate in the section responsible for the financial regulation of credit institutions. Just last week, I was told there are 26 vacancies in the Enforcement section of the Central Bank. The level of vacancies across vital functions of the Central Bank is a cause of concern.
