Ireland’s Banking Regulation Evolution: Has Enough Changed in the Last 10 Years?

Introduction

It has been ten years since Ireland’s banking crisis, which led to a €64m bailout and an unprecedented collapse in property prices. The crisis also resulted in Ireland losing sovereignty and a deep and prolonged economic recession.

A Look Back at the Crisis

To mark this milestone, Trinity College Dublin hosted a public discussion series, Behind the Headlines, which examined the changes wrought in Ireland’s financial, business, and cultural landscapes by the events of the past decade. Speakers from politics, banking, journalism, and academia participated in the discussion.

Key Takeaways

• The crisis led to a €64m bailout and an unprecedented collapse in property prices.
• Ireland lost sovereignty and experienced a deep and prolonged economic recession.
• Trust in financial institutions has yet to be regained.

Regulatory Reforms

Ed Sibley, Deputy Governor of Prudential Regulation at the Central Bank of Ireland, discussed how regulatory reforms since the crisis have increased the resilience of the financial system. However, he also highlighted some persistent legacy issues that remain, including culture and behavior within the financial sector.

Key Points

• Regulatory reforms have increased the resilience of the financial system.
• Persistent legacy issues include culture and behavior within the financial sector.

Historical Context

Antonia Hart, a PhD candidate in Trinity’s School of Histories and Humanities, took the audience on a journey back to 19th century Ireland, where credit played a central role in people’s lives during times of poverty and precarity. She noted how this history is relevant to the banking crisis discussion today.

Key Points

• Credit played a central role in people’s lives during times of poverty and precarity in 19th century Ireland.
• This history is relevant to the banking crisis discussion today.

Political Landscape

Joan Burton TD, Labour Party spokesperson on Finance from 2002 to 2011, spoke about the political landscape at the time of the crisis, including boom-to-bust policies that led to the crash with devastating consequences for Irish people, society, and economy.

Key Points

• Boom-to-bust policies led to the banking crisis.
• The crisis had devastating consequences for Irish people, society, and economy.

Cultural Capital

Dr Philip Coleman, Associate Professor in Trinity’s School of English, explored how Irish poets have responded to the banking crisis over the past decade. He discussed the relationship between money and art, highlighting the value of cultural capital.

Key Points

• Irish poets have responded to the banking crisis over the past decade.
• The relationship between money and art is a valuable topic for discussion.

Conclusion

The Behind the Headlines series is a platform that offers background analyses of current issues from experts in arts and humanities research, aiming to provide a forum for informed and respectful public discourse.