IDEAS home Printed from https://ideas.repec.org/p/cbi/ecolet/11-el-18.html
   My bibliography  Save this paper

Shining a light on Special Purpose Entities in Ireland

Author

Listed:
  • Golden, Brian

    (Central Bank of Ireland)

  • Hughes, Patrick

    (Central Bank of Ireland)

Abstract

Special Purpose Entities (SPEs) form a substantial component of the Irish-resident financial sector and play an important role in risk dispersion within the global financial system. They are, however, quite complex, spanning a wide range of activities and often forming part of cross-border, multi-entity corporate structures. More generally, market-based credit-intermediation is increasingly supplementing and substituting traditional models of credit, where a company or household borrows directly from a bank which bears the risk of the loan (IMF, 2016). Ireland has emerged as a global hub for this activity, having a non-bank financial sector with total assets of €4.5 trillion in Q1 2018, of which €676 billion were held by SPEs. This paper’s primary purpose is to outline the activities of the SPE sector in Ireland. The insights are primarily gathered from granular data collected by the Central Bank of Ireland (hereafter the Central Bank), which covers each SPE‘s balance sheet, mostly at individual security level, its activity type and links to other entities, among other information.3 We provide a broad overview of the sector, detail elements of interconnectedness to other financial entities, highlight some common business models and discuss the impact on the Irish economy.

Suggested Citation

  • Golden, Brian & Hughes, Patrick, 2018. "Shining a light on Special Purpose Entities in Ireland," Economic Letters 11/EL/18, Central Bank of Ireland.
  • Handle: RePEc:cbi:ecolet:11/el/18
    as

    Download full text from publisher

    File URL: https://www.centralbank.ie/docs/default-source/publications/economic-letters/vol-2018-no-11-shining-a-light-on-special-purpose-entities-in-ireland-(golden-and-hughes).pdf?sfvrsn=8
    Download Restriction: no

    References listed on IDEAS

    as
    1. Janko Cizel & Jon Frost & Aerdt Houben & Peter Wierts, 2019. "Effective Macroprudential Policy: Cross‐Sector Substitution from Price and Quantity Measures," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 51(5), pages 1209-1235, August.
    2. Stefan Avdjiev & Cathérine Koch & Patrick McGuire & Goetz von Peter, 2017. "International Prudential Policy Spillovers: A Global Perspective," International Journal of Central Banking, International Journal of Central Banking, vol. 13(2), pages 5-33, March.
    3. Barrett, Dominick & Godfrey, Brian & Golden, Brian, 2016. "New Data Collection on Special Purpose Vehicles in Ireland: Initial Findings and Measuring Shadow Banking," Quarterly Bulletin Articles, Central Bank of Ireland, pages 71-84, October.
    4. Golden, Brian & Maqui, Eduardo, 2018. "How 'special' are international banks sponsoring Irish-resident SPEs?," Research Technical Papers 14/RT/18, Central Bank of Ireland.
    5. Sunil Sharma & Sushil Bikhchandani, 2000. "Herd Behavior in Financial Markets; A Review," IMF Working Papers 00/48, International Monetary Fund.
    6. Godfrey, Brian & Jackson, Clive, 2011. "Meeting the Statistical Challenges of Financial Innovation: Introducing New Data on Securitisation," Quarterly Bulletin Articles, Central Bank of Ireland, pages 109-122, July.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cbi:ecolet:11/el/18. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fiona Farrelly). General contact details of provider: http://edirc.repec.org/data/cbigvie.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.