Fiscal policy Even before the global crisis metastasized in September 2008, Ireland’s fiscal position was coming under pressure, not just because of an accelerated expansion of spending in the previous few years, but especially because of the sharp fall in tax revenues which began soon after the property prices started to turn down.
The proposed measures address regulatory arbitrage between banks and NBFCs in areas such as capital market or real-estate exposure through the calibrated use of prudential measures such as higher capital requirements, and risk weights for sensitive sectors, wherever greater risks are perceived.