Ireland (officially the Republic of Ireland) is a country in north-western Europe, a member of the European Union since 1973.
The economy of Ireland has been transforming since 1980s from agricultural to modern knowledge economy, with the focus on development of high technology industries and services. Key sectors of the Ireland's economy are production of pharmaceuticals and medical devices, chemicals, computer hardware and software, food products, beverages and brewing.
Irish banking sector was affected by post-2008 banking crisis, resulting in the government's bank bailout, in particular nationalization and recapitalization of the troubled banks. Now Irish banking sectior is dominated by 'Big Four' domestic banks.
Ireland joined the Euro Area on 1 January 1999.
|Nominal GDP (2016)||Nominal GDP per Capita (2016)||Real GDP Growth (2016)|
|265.8 bln EUR (+0.19%)||56 800 EUR (+0.19%)||5.2 % (2015: 7.8 %)|
According to Eurostat, nominal GDP of Ireland in 2016 was 265.8 bln EUR.
Ireland outperforms the European Union in terms of real GDP growth with the average annual differential coming to 1.8% over the past 10 years (2006 - 2016). In 2016 real GDP growth was 5.2% which was above the Euro Area average (1.8%) and above the European Union average (1.9%). Real GDP growth in 2017 - 2022 are IMF's estimates.
Chart 1. Real GDP Growth in Ireland. Source: Eurostat, International Monetary Fund.
In 2016, nominal GDP per capita in Ireland was 56 800 EUR.
Ireland has an above-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, exceeded that of the European Union by 62.6% over the past 10 years (2006 - 2016). GDP per capita at PPP in 2017 - 2022 are IMF's estimates.
Chart 2. GDP Per Capita at Purchasing Power Parity in Ireland; European Union = 100.
|CPI, MoM (Sep 2017)||CPI, YoY (Sep 2017)||CPI, Year Average (2016)|
|-0.6 % (Aug 2017: 0.4 %)||0.2 % (Aug 2017: 0.4 %)||-0.2 % (2015: 0.0 %)|
According to Eurostat, inflation rate in Ireland in 2016 expressed as annual percentages of average consumer prices was -0.2% which was below the Euro Area average (0.2%) and below the European Union average (0.3%). Inflation rates in 2017 - 2022 are IMF's estimates.
Chart 3. Inflation Rate in Ireland. Source: Eurostat, International Monetary Fund.
|Unemployment Rate (2016)|
|8.0 % (2015: 9.4 %)|
|Government Bond Yield (Sep 2017)|
|0.70 % (Aug 2017: 0.73 %)|
Chart 4. Government bond yield of Ireland. Source: Eurostat.
|A (high credit quality), outlook stable||A3 (upper medium grade), outlook positive|
Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.
Ireland signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Ireland and other jurisdictions which were signed but haven't yet come into force (for agreements signed after after 1 January 2013 of signing the agreement is given in brackets):
There are 3 ways for jusrisdictions to exchange information on tax matters:
Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.
Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.
Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.
Ireland signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Ireland and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 1 January 2013 of signing the agreement is given in brackets):
Ireland signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.
Ireland has signed bilateral agreements with 58 jurisdictions to automatically receive information:
Ireland has signed bilateral agreements with 70 jurisdictions to automatically send information:
Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).
|FATCA Status in Ireland|
|IGA in effect since 23 January 2013, Model 1|
Ireland has FATCA agreement with the U.S. in effect since 23 January 2013 (Intergovernmental Agreement Model 1). Financial institutions operating in Ireland are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is reciprocal: Irish financial accounts hold in U.S. financial institutions will be reported to Irish authorities.
|Financial Market Development|
|4.0 (max 7.0), 69th out of 138 countries|
|4.0 (max 7.0), 109th out of 138 countries|
According to World Economic Forum's Global Competitiveness Report 2017-2018, financial market development in Ireland is scored 4.0 out of maximum 7.0 and ranked 69th out of 138 analysed economies, trustworthiness and confidence of financial market is scored 4.3 (67th place).
Chart 5. Financial Market Development in Ireland. Source: WEF.
Soundness of banks is scored 4.0 bringing Ireland into the 109th place.
Chart 6. Soundness of Banks in Ireland. Source: WEF.
|Maximum Protected Amount|
|100 000 EUR|
Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Ireland are summarised in Table 1.
|Scheme Participants||all credit institutions operating in Ireland, branches of non-EEA banks, branches of Irish banks abroad|
|Scheme Exemptions||branches of EEA-banks (covered by their home countries)|
|Eligible Depositors||individuals, small companies, partnerships, clubs, associations, schools|
|Covered Accounts||any credit balance on an account with a bank (for example, current accounts, demand deposit accounts, notice deposit account, certificates of deposit,fixed-term deposit accounts,share accounts in a building society or credit union,deposit element of structured deposits/tracker bonds may also be eligible,credit balances on credit cards issued by credit institutions may also be eligible)|
|Maximum Protected Amount||100 000 EUR|
|Paid In Currency||EUR|
Table 1. Deposit guarantee scheme in Ireland.
EEA stands for European Economic Area and consists of all EU member states plus Liechtenstein, Norway and Iceland.
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
|Local Currency (Euro)||Foreign Currency|
|Aaa (prime)||Aaa (prime)|
Local currency (Euro) deposit ceiling for Ireland is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).
|Number of Banks|
|Consolidated Assets (2016)|
|439.10 bln EUR (-8.92%)|
|Recent Changes (2016)|
|new banks: 2, closed banks: 44|
Currently there are 359 credit institutions operating in Ireland.
In 2016 consolidated banking assets in Ireland were 439.10 bln EUR. The consolidated banking assets' evolution is shown at Chart 7 below.
Chart 7. Consolidated banking assets in Ireland.
Recent structural changes (2013 - 2016) of the banking sector of Ireland are summarised in Table 2.
|Number of Opened Banks||1||3||2||2|
|Number of Closed Banks||7||14||33||44|
Table 2. Recent structural changes in the banking sector of Ireland.
The list of the most recently opened banks in Ireland is provided in Table 3.
|Opel Bank GmbH (new)||November 2016|
|LGT Bank AG (new)||November 2016|
|Credit Suisse AG - Dublin Branch (new)||December 2015|
|Bank of America Merrill Lynch International Limited (new)||January 2015|
|Mitsubishi UFJ Investor Services and Banking (Luxembourg) S.A. (new)||July 2014|
|The Bank of New York Mellon SA/NV (new)||July 2014|
|Sumitomo Mitsui Banking Corporation Europe Limited (new)||January 2014|
|Dell Bank International Limited (new)||July 2013|
Table 3. The most recently opened banks in Ireland.
All the credit institutions operating in Ireland can be classified into several categories. Table 4 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||35|
There are 35 branches of foreign banks from 11 different countries in Ireland. Table 5 shows 10 countries having the biggest number of branches in Ireland.
|Country of Origin||Number of Branches|