The Irish Banking Crisis

Review of Business & Finance Studies, Vol. 5, No. 2, pp. 85-108, 2014

24 Pages Posted: 13 Dec 2014

Date Written: 2014

Abstract

The 2007 financial crisis led to a steep decline in the supply of capital to organizations around the world. As liquidity dried up, countries such as Ireland with fragile and overextended credit environments, overpriced asset markets, and accommodative regulatory systems were vulnerable to the resulting shock waves. This case explores Ireland’s economic and financial circumstances before and during the crisis, and its response to the crisis in the face of mounting pressure from the European Commission, the European Central Bank and the IMF for action that would help bring Ireland and other stressed euro zone countries back from the brink. At the close of 2010, Minister for Finance Brian Lenihan Jr. needed to decide whether to accept financial assistance from Europe and the IMF or have Ireland go it alone. The case has a difficulty level appropriate for masters’ level or upper level bachelors’ students in finance or economics. It is most effectively taught to students who have been exposed to macroeconomics and introductory finance. The case is designed to be taught in 1.5-2 class hours and should require 2-4 hours of outside preparation by students.

Keywords: Financial Crisis, Property Bubble, Banking Crisis, Government Policy

JEL Classification: E44, G01, G21

Suggested Citation

Centonze, Arthur L., The Irish Banking Crisis (2014). Review of Business & Finance Studies, Vol. 5, No. 2, pp. 85-108, 2014, Available at SSRN: https://ssrn.com/abstract=2456455

Arthur L. Centonze (Contact Author)

Pace University ( email )

One Pace Plaza
White Plains, NY New York 10603
United States

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