IDEAS home Printed from https://ideas.repec.org/p/ysm/ypfswp/57244.html
   My bibliography  Save this paper

Ireland and Iceland in Crisis A: Increasing Risk in Ireland

Author

Listed:
  • Arwin G. Zeissler
  • Karen Braun-Munzinger
  • Andrew Metrick

    ()

Abstract

Ireland went from being the poorest member of the European Economic Community in 1973 to enjoying the second highest per-capita income among European countries by 2007. Healthy growth in the 1990s eventually gave way to a concentrated boom in property-related lending in the 2000s. The growth in the aggregate loan balances of Ireland’s six major banks greatly exceeded the growth in gross domestic product (GDP); as a result, bank loan balances grew from 1.1 times GDP in 2000 to over 2.0 times GDP by 2007. Given the small size of the domestic retail depositor base, the Irish banks increasingly used the wholesale market to fund loan growth, despite its risks. The property-related lending boom proved unsustainable during the global financial crisis, and, on September 29, 2008, the government of Ireland took the unprecedented step of guaranteeing the deposits and substantially all other liabilities of the major Irish banks.

Suggested Citation

  • Arwin G. Zeissler & Karen Braun-Munzinger & Andrew Metrick, 2014. "Ireland and Iceland in Crisis A: Increasing Risk in Ireland," Yale School of Management YPFS Cases 57244, Yale School of Management, revised Mar 2015.
  • Handle: RePEc:ysm:ypfswp:57244
    as

    Download full text from publisher

    File URL: http://som.yale.edu/download-ypfs/2014-4A-V1-Ireland-and-Iceland-in-Crisis-A-Increasing-Risk-in-Ireland.pdf
    Download Restriction: no

    More about this item

    Keywords

    Systemic Risk; Financial Crises; Financial Regulation;

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

    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:ysm:ypfswp:57244. 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: (). General contact details of provider: http://edirc.repec.org/data/smyalus.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.

    We have no references for this item. You can help adding them by using 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.