EU Support in the Irish Financial Crisis
In this video, Michael provides details of the agreed Programme of Financial Assistance to Ireland, including the commitments to bank restructuring and capitalisations. He also considers the effects of the Prudential Capital Adequacy Assessment, PCAR 2011, which was required as part of the programme.
Overview
Ireland’s financial system had hit rock bottom and the need for international assistance loomed. This support arrived through the ‘Troika Programme.’ The result was capital injections into the BOI as well as the IBRC in promissory notes, leading to their liquidation. Ireland’s financial system was on the road to recovery.
Key learning objectives:
Explain the background to Ireland’s Financial Crisis and the need for international assistance
Identify the motives behind the ECB actions
Discuss the role of the Troika Programme and its liquidation of IBRC which secured recovery.
Summary
Expert
Michael Torpey
Michael began his career working with the Irish Finance Ministry. In 1992 he joined Irish Permanent Building Society as its first Treasurer and in 2000 became Finance Director at First Active. In 2010 he set up a specialist banking unit to lead the Irish State’s handling of the banking crisis. In 2013 Michael became Chief Executive of the Bank of Ireland until he retired in 2018.
