European households and institutions collectively hold substantial savings. In the euro area alone, the stock of deposits is nearing €10 trillion, yet investment has not kept pace with the growth in savings.
European Central Bank survey data shows that only a fraction of EU household wealth is held directly in capital markets instruments.
This matters because, in order to fund the investments our European economies need—be that for innovation, infrastructure or the digital and green transitions—we need strong capital markets to complement a strong banking sector in financing a more productive and competitive Europe.
The Savings and Investments Union agenda speaks directly to this challenge, recognising that unlocking retail participation in capital markets is not merely a financial services matter: it is central to Europe’s economic and financial resilience and the welfare of our people.
Ireland’s position within this narrative is distinctive. Irish household wealth is heavily concentrated in housing, accounting for roughly two-thirds of total net wealth.
Where households do hold financial assets, these are indirectly in occupational pensions and life insurance and, most importantly, approximately €170 billion sit idle in deposits in Irish banks.
The result is that Irish retail participation in financial markets is very limited, even compared to our European peers.
As outlined in our research on retail investor participation, published in late 2025, Irish households hold just 2.3 percent of their financial assets in direct investments, such as listed equity and debt securities, compared to the EU average of 7.5 percent.
And Ireland has one of the lowest levels of direct holdings in investment funds in the EU, at just above 2.2 percent, despite being an international financial hub and one of the largest global centres for investment funds, with over €5 trillion in assets under management domiciled here.
This low level of direct retail participation reflects a complex interplay of historical, cultural and structural factors that have shaped how we think about savings and investment.
Yet our research shows that Irish consumers are motivated to invest. They recognise the importance of securing retirement income, providing for their children’s futures and building long-term financial security.
Significant barriers persist, however. Psychological and emotional barriers are deeply rooted, perhaps in Ireland’s economic history and the financial crises we have experienced.
There are knowledge and understanding gaps, including a perception that investment is complex—the preserve of the wealthy—and a sense that the investment ecosystem does not serve the full spectrum of potential retail investors.
Given the complexity of the issue, no one intervention is enough. Multiple and sustained efforts from many stakeholders is most likely required.
From my point of view, there are three important ingredients to enhancing retail investor participation in Ireland:
1. the availability of suitable products;
2. that retail investors have the financial education, autonomy and advice to invest; and
3. that retail investors are protected when they do invest, with strong consumer protection frameworks and firms securing their interests.
I am heartened by the efforts of policymakers and regulators—domestically and in the rest of Europe—to progress and reinforce these ingredients. The Central Bank supports efforts to reduce barriers to retail investment.
Products to encourage investment need to be flexible enough to allow product producers to design bespoke offerings that meet genuine consumer needs whilst maintaining sufficient standardisation to ensure comparability and reduce administrative burdens.
In my view, such endeavours should be accompanied by sustained efforts to improve financial literacy and investment knowledge.
Consumers need to understand not only what they are investing in, but how any investment aligns with their financial goals, and what risks they are taking.
In short, I suggest it must be part of a broader effort to build financial literacy, foster a positive investment culture and restore public trust and confidence in capital markets.
The Government’s National Financial Literacy Strategy, launched just over a year ago, recognises this challenge and commits to building the financial capability of Irish citizens. This strategy will be essential to the success of any initiative aimed at broadening retail participation.
Research has shown that financial literacy levels can play an important role in shaping household financial behaviour. The Central Bank is committed to playing its part, including through our consumer protection framework and supervisory engagements.
This [Annual Savings and Investment Forum] is the right place to work through these considerations, bringing together policymakers, regulators, consumer advocates and industry participants, all of whom have a role to play in contributing to this initiative.
We will play our role in supporting the Savings and Investments Union agenda, in line with our mission to ensure the financial system is operating in the best interests of consumers and the wider economy.
For me, this means that the regulatory framework supports retail investment, that consumer protections are robust and that trust and confidence in capital markets are restored and sustained.
And, to that end, we are committed to working collaboratively with our colleagues at home and abroad.
This article comprises the opening remarks given by Gabriel Makhlouf at the inaugural Annual Savings and Investment Forum convened on March 31, 2026, by Tánaiste and Minister for Finance, Simon Harris TD, and supported by the Central Bank of Ireland and the Competition and Consumer Protection Commission. The establishment of the forum was a key recommendation of the Government’s Funds Sector 2030 report, which set out a strategic vision for the continued growth of Ireland’s financial services sector. The 2026 forum focused on advancing a framework for a Personal Investment Account in Ireland, aligned with the European Commission’s recommendation to develop accessible, consumer-friendly savings and investment accounts across Member States.