The Central Bank's Financial Regulator and Deputy Governor is stepping down.

Matthew Elderfield is returning to the UK to pursue other interests.

Mr Elderfield was Head of Financial Regulation at the regulatory authority, until the announcement.

His resignation will take affect in six months’ time.

Central Bank Governor, Patrick Honohan said "Matthew accepted the role of financial regulator at a key moment in the history of the State. With energy, commitment and integrity he has managed the necessary transformation in our approach to the stabilisation, regulation and supervision of financial institutions".

"He has contributed enormously to the organisational effectiveness of the Central Bank. Although it was always evident to me that we were very likely to have Matthew with us for only a few years, it is sad that this period is now drawing to a close. We will miss him greatly, though the institutional structures he has built and the work practices he has inculcated will endure as his lasting legacy" he added.  

'Grateful for all the support'

Mr Elderfield himself said "It has been a great privilege to be a public servant in Ireland in such challenging times. But after some 6 years away, it is time to return home to London".

"With the help of a fantastic team at the Central Bank, I feel we have built a strong regulator and set Ireland on a path to financial stability. I am very grateful for all the support I have had during my time here and will remain a friend of Ireland for years to come" he added.

Mr. Elderfield has advised the Commission of the Central Bank that he has waived his €100,000 bonus entitlement at the end of his contract of employment.

He will step away with immediate effect from involvement in supervisory and other issues if and where a conflict could be perceived.

Newstalk's Business Editor Ian Guider says the banks have seen big reforms under his guise.