An institutional architecture for meta-risk regulation in Irish banking: Lessons from Anglo Irish Bank's Minsky moment

O'Sullivan, Kenneth Patrick Vincent; Kinsella, Stephen
September 2011
Journal of Banking Regulation;Sep2011, Vol. 12 Issue 4, p342
Academic Journal
The article maps the risk management failures within Anglo Irish Bank, showing that, when banks are systemic in nature, poor internal corporate governance within a Minsky credit cycle can lead to destabilising macroeconomic conditions, which may prolong the effects of a credit-induced downturn. The article highlights a failure of management at Anglo Irish Bank to establish and measure firm-level risks and develop appropriate internal controls to support a culture of prudent credit management. We propose the adoption of a novel supervisory architecture based on the meta-risk regulatory philosophy, which is designed to strengthen risk management practices at banks.


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