It is obvious that the banking crises in Ireland and Spain share many similarities. However, it is also clear that the Spanish banking crisis is quite a bit smaller relative to its GDP (even if it is bigger relative to euro area GDP).
- The credit boom was not quite as strong in Spain as in Ireland. The credit/GDP ratio in Ireland rose from 104 percent in 2002 to 210 percent in 2008; the increase in Spain was from 100 percent in 2002 to 188 percent in 2008
- A recent DB report calculates that real estate loans peaked at 77 percent of GDP in Ireland but only 29 percent of GDP in Spain, while estimated non-performing loans stand at 52 percent of GDP in Ireland but only 17 percent of GDP in Spain
- Ireland’s Troika funding of 67.5 billion euro is equivalent to 43 percent of Irish GDP, the Spanish funding of 100 billion is equivalent to about 9 percent of Spanish GDP.