Banking and Capital Market Activity in Dublin: Recent Developments and Future Prospects under the Euro

Abstract

The introduction of Europe's single currency will have an immediate effect on the financial sectors of participating economies. While research in this area has focused on the broad implications for Europe's banking structure, this has been at the neglect of the smaller European financial centres which, while peripheral, make important contributions to their domestic economies. As a representative study, this paper examines how the recent developments in Ireland's financial sector will be affected by the introduction of the euro. It focuses on the probable contraction of Dublin's financial markets and assesses the threat of foreign acquisition facing its main domestic clearing banks.