Deutsche Bank have an online summary analysis of the problems facing the Irish economy (hat tip Turbulence Ahead). Overall, it provides a reasonable account of the current situation. However, it does perpetuate the misleading impression that the the scale of the Irish banking system is extraordinarily large relative to its GDP. As has been noted repeatedly on this blog and elsewhere in the domestic media, the aggregate statistics are dominated by the ‘pure offshore’ activities of international banks at the IFSC, with the ‘domestic’ component of the banking system large but not to this ‘off the charts’ extent.
One reply on “Deutsche Bank on the Irish Economy”
One of the issues is banks obtaining credit – the next issue is how can they lend the money to business in a way that makes sense. The old rule books no longer hold true and there must be some accountability beyond the reckless lending during the property bubble.