The Deputy Governor of the Central Bank has said while the financial system is stronger than a decade ago, its resilience is not limitless.

Sharon Donnery made her comment as she addressed an online presentation hosted by the Institute of International and European Affairs.

She said she recognised the resilience of Irish households, businesses and the domestic banking system but said that only the initial economic effects of the Covid-19 pandemic have been seen so far.

"The full effects of this crisis will emerge over time as the damage and scarring to sectors is realised, and the extent depends on the path, persistence and waves of the virus and the necessary public health responses," she said.

Comparing the impact of Covid-19 to previous economic shocks, Ms Donnery described the crisis as a truly global event, unprecedented in terms of size and speed, with uncertainty greater than that seen in 2008/2009.

"The OECD has warned of the worst peacetime recession in a century. Their latest numbers, in a single wave scenario, estimate global economic activity to fall 6% this year. In contrast, at the peak of the 2008/2009 financial crisis, global growth fell by 1.7%," Ms Donnery continued.