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

International Monetary Fund

No 2016/317, IMF Staff Country Reports from International Monetary Fund

Abstract: 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.

Keywords: ISCR; CR; interest rate; banking sector; sensitivity analysis; investment funds; negative equity; interest rate shock; long-term debt; household financial assets; primary sector; CRE price; current ratio; Loans; Mortgages; Housing prices; Stocks; Corporate sector; Global; Europe; Markov regime; balance sheet composition of financial assets; Household indebtedness; loss forecasting; liabilities of household; real estate investment trust; evaluation of REE price; Tier 1 (search for similar items in EconPapers)
Pages: 93
Date: 2016-09-29
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=44310 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfscr:2016/317

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Staff Country Reports from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().