Ireland : Financial Sector Assessment Program: Technical Note-Nonbank Sector Stability Analyses

Author/Editor:

International Monetary Fund. Monetary and Capital Markets Department

Publication Date:

September 29, 2016

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This Technical Note discusses the findings and recommendations made in the Financial Sector Assessment Program for Ireland in the areas of nonbank sector stability. Both nonparametric and parametric methods suggest that the residential real estate market in Ireland is close to or moderately below its equilibrium level. Two standard metrics of price-to-income and price-to-rent ratios show that following a protracted period of overvaluation prior to the crisis and a correction afterward, the market has been close to its equilibrium level in recent quarters. Households have deleveraged, but are still highly indebted. The stability analysis results also suggest that vulnerabilities among nonfinancial firms have moderated in recent years.

Series:

Country Report No. 16/317

Subject:

English

Publication Date:

September 29, 2016

ISBN/ISSN:

9781475542257/1934-7685

Stock No:

1IRLEA2016011

Format:

Paper

Pages:

93

Please address any questions about this title to publications@imf.org