Understanding Banking in Ireland Post author By Philip Lane Post date March 12, 2012 Central Bank economists have released two new technical papers on the Irish banking sector: Modelling the corporate deposits of Irish financial institutions: 2009 – 2010 The financial crisis and the pricing of interest rates in the Irish mortgage market: 2003-2011 Categories In Uncategorized 13 Comments on Understanding Banking in Ireland ← The Economics of the Fiscal Compact → What Would Change as a Result of the Fiscal Compact? 13 replies on “Understanding Banking in Ireland” Understanding banking in Ireland : 1. A job in the bank 2. Bank shares are blue chip 3 Be with AIB 4 The social status of the bank manager However 5 AIB has an existential crisis once every 30 years or so and this one is a real humdinger Prof Philip Lane posted a link some time ago to a paper re how the ECB banking system works amongst other things. Prof Lane described it as somethign like “mandatory reading for contributors to this blog”. I was hoping to read it to help me understand the ECB system but I annot find the relevant posting and link. Can anyone direct me to this? @Zhou Does the ECB banking system actually work ? if so for whom does it work for pray tell ? The liquidity support for commercial Banks and therefore their credit hyperinflated assets rather then States themselves by both the CBI & ECB calls into question what exactly are they now ? Super banks completly divorced from the state I imagine – free to S$£t into them at will. I will continue to believe that all credit deposits withen european states should have been nationalised with the international bond holders eating the losses. As for corporate deposit holders well that adds further to the complexity of this byzantine model. Complexity = Fragility But Fishers maxim of nationalising money and not the banks holds true to this very day. @ Dork Complexity doesn’t necessarily mean fragility. The problem is monoculture. Spuds in the 1840s. Houses in 2007. Diversity = Resilience @Seafoid Yes you are correct – ecosystems are a good example If the Krill in Antarctica somehow disappear all of the Fauna gets wiped out. I agree – but complexity and diversity are slightly different. Money needs to be simple not complex as it is the medium through which the Flora & Fauna operate. A element with 2 Hydrogen atoms and 1 oxygen atom comes to mind. Yeah 2 to 1 leverage might be the optimum monetory envoirment – as opposed to 8 to 1 leverage of the pre 1987 Irish sea or the 42 to 1 leverage of the naughties. These are obviously failed monetory worlds. This brief video demonstrates the effects of the financial crisis on local banks Anglo Irish, Bank of Ireland, AIB and Irish Permanent http://www.rts.ch/video/info/journal-19h30/#/video/info/journal-continu/3848758-sequences-choisies-demolition-de-4-tours-en-angleterre.html @Central Bank Non-technical summaries appreciated. @seafoid, the dork On complexity theory – cf Santa Fe Institute @Central Bank Blind Biddy has figured out a Higgs-bosun algorithm which allows shredded promissory notes to be re-replicated and tossed out of the little black hole in one of your vaults and back into the real serf-economy … very hush hush … not a word to Frankfurt am Main …. she is hoping for an invite in the near future to afternoon tea with The Guv’nor for some ‘confidential’ if substantive discussions! zhou_enlai, Here is the post by Philip: http://www.irisheconomy.ie/index.php/2011/02/07/the-implementation-of-monetary-policy-in-the-euro-area The publication in question has been updated again since then: http://www.ecb.int/pub/pdf/other/gendoc201109en.pdf Understanding banking in America. http://www.ft.com/intl/cms/s/0/9e87396a-6a11-11e1-a26e-00144feabdc0.html?ftcamp=published_links/rss/companies/feed//product Wrong link. Try this one. http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20120313a1.pdf The 11:38 pm link can be found by Googling- Whistleblowers drawn by tip-off payouts @simon twist You are a legend. Much appreciated. Comments are closed.