While narrating the complexities, the IMF paper makes a reference to the broadening of supervisory concerns. “This is a particular concern in the cases where foreign commercial banks expand their operations rapidly in the area of non-bank financial services, such as insurance, portfolio management, and investment banking”.(p.20).
The current phase of globalisation involves the reallocation of activities across countries with many low-skill activities moving to low cost locations where the supply of low-skilled labour is plentiful. This leaves countries like Ireland increasingly competing for more high-value-added activities and the country needs to position itself appropriately in order to pick up a significant share of this type of investment.