Working Paper: CEPR ID: DP10777
Authors: Philip R. Lane
Abstract: This paper analyses the funding of the Irish domestic banking system during the boom period. We highlight: the shifting roles of deposit and bond funding; the prominence of foreign banks as funding counterparties; the role of interoffice funding; and the scale of US dollar and Sterling funding. From August 2007, the deterioration in funding conditions is clearly evident across a range of indicators.
Keywords: bank funding; international capital flows; irish crisis
JEL Codes: E50; F36; F45
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| foreign funding inflows (F21) | credit expansion (E51) |
| deterioration in funding conditions (E44) | onset of banking crisis (F65) |
| liquidity concerns (G33) | banking crisis (F65) |
| shift from long-term bond funding to shorter-term deposit funding (G21) | increasing market skepticism (D84) |
| market conditions (P42) | funding strategies (I22) |