The Central Bank has said it expects banks here to use the positive effects of measures announced by the ECB yesterday to support the economy.
The European Central Bank yesterday approved new stimulus initiatives to help the euro zone economy cope with the growing cost of the coronavirus epidemic.
The ECB said it would offer fresh loans to banks, offer previously agreed liquidity facilities at even more favourable rates and said it would temporarily increase assets purchases to help the economy cope.
But it kept euro zone interest rates unchanged.
In a statement today, Central Bank Governor Gabriel Makhlouf said he does not want to see the banks increase dividend distributions or salaries as a result of the ECB's measures.
The Governor said the Central Bank continues to monitor the evolving situation around Covid-19 and to assess the impact on the economy and the financial system.
"Our focus is on ensuring monetary and financial stability and that the financial system operates in the best interests of consumers and the wider economy," Mr Makhlouf said.
"We are engaged with the financial sector to ensure that firms are responding effectively to the evolving situation," he added.
Gabriel Makhlouf said the the spread of Covid-19 has come as a major shock to growth prospects across the globe.
"It is clear that the pandemic is disrupting economic activity, both internationally and in Ireland, with adverse implications for the financial position of households, businesses and the financial system in the near term," he stated.
"The necessary containment measures on public health grounds will have a significant impact on the euro area and Irish economies, in particular on tourism, transport and recreational services," he added.
Mr Makhlouf said the ECB believes that an ambitious and co-ordinated fiscal policy response is needed to mitigate the economic impact of the virus and support workers and businesses.
"Fiscal measures, such as those announced recently by the Irish Government, are the primary policy tool to deal with this type of shock," he added.
The Central Bank boss also acknowledged "the exceptional efforts" of the country's health professionals in dealing with a major global public health emergency.
