The Central Bank has pushed back against suggestions that it should be doing more to attract financial services companies to Dublin following the Brexit vote in the UK and the expected exodus of some financial companies from London.
In a letter to the Seanad Brexit committee, Central Bank Governor Philip Lane said the Central Bank Reform Act of 2010 - which removed the objective of promoting financial services - was a "correct decision".
Between 2003 and 2010, the Central Bank had an explicit mandate "to promote the development within the State of the financial services industry (but in such a way as not to affect the objective of the bank in contributing to the stability of the State's financial system".)
Professor Lane said that his predecessor Patrick Honohan had highlighted how these goals "may well have been in conflict" and had put the Financial Regulator "in a difficult position".
"I am firmly of the view that the subsequent removal of the objective to promote financial services in the Central Bank Reform Act 2010 was the correct decision," Professor Lane said in the letter to the committee.
He also said the promotion role can be fulfilled by other government agencies (such as IDA Ireland).
This would allow the Central Bank to focus on its twin regulatory goals of maintaining financial stability and protecting consumers, the Central Bank Governor said.
"In particular, removing this particular conflict avoids the potential creation of perverse incidents", Professor Lane added.
He said that one of the most attractive features Ireland can have as a location for financial sector investment is a reputation for "high quality regulation and supervision".
"The Central Bank has adopted a consistent approach in relation to Brexit-related supervisory queries," Professor Lane said in the letter.
"Our regulatory approach is in line with sound practices across Europe to deliver a level playing field in relation to compliance with EU, regulator requirements," he concluded.
As the details of Brexit continue to be worked out, a number of companies have announced where they will relocate their business operations in order to maintain access to the EU single market.