Ireland: Financial Sector Assessment Program: Technical Note-Nonbank Sector Stability Analyses

September 29, 2016

Preview Citation

Format: Chicago

Ireland: Financial Sector Assessment Program: Technical Note-Nonbank Sector Stability Analyses, (USA: International Monetary Fund, 2016) accessed November 21, 2024

Summary

This Technical Note discusses the findings and recommendations made in the Financial Sector Assessment Program for Ireland in the areas of nonbank sector stability. Both nonparametric and parametric methods suggest that the residential real estate market in Ireland is close to or moderately below its equilibrium level. Two standard metrics of price-to-income and price-to-rent ratios show that following a protracted period of overvaluation prior to the crisis and a correction afterward, the market has been close to its equilibrium level in recent quarters. Households have deleveraged, but are still highly indebted. The stability analysis results also suggest that vulnerabilities among nonfinancial firms have moderated in recent years.

Subject: Banking, Corporate sector, Economic sectors, Financial crises, Financial institutions, Housing prices, Loans, Mortgages, Prices, Stocks

Keywords: Balance sheet composition of financial assets, Banking sector, Corporate sector, CR, CRE price, Current ratio, Europe, Evaluation of REE price, Global, Household financial assets, Household indebtedness, Housing prices, Interest rate, Interest rate shock, Investment funds, ISCR, Liabilities of household, Loans, Long-term debt, Loss forecasting, Markov regime, Mortgages, Negative equity, Primary sector, Real estate investment trust, Sensitivity analysis, Stocks, Tier 1

Publication Details

Pages:

93
Volume:

---
DOI:

---
Issue:

---
Series:

Country Report No. 2016/317
Stock No:

1IRLEA2016011
ISBN:

9781475542257
ISSN:

1934-7685

FACTSHEETS

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES

IMF Staff Country Reports