Background Early Banks were not effective at mobilising capital. They largely facilitated the transfer of funds. Anti-usury legislation fixed interest rates at a maximum of 7 percent in 1721. Monies were most commonly transferred by bills of exchange written between merchant houses. Bills of exchange facilitated international and domestic trade. Government bills drawn on the treasury had a greater security and less risk of default. […]
Pre-Modern Coins The use of coinage in Ireland dates back at least 1000 years. The circulation of coins was centred on ports and other major towns. This existed side by side with bartering until the emergence of banking-like activities in the late 17th century. The coins issued in Dublin in the 10th century were similar to those circulating in other Norse settlements. In the 13th […]
Bank of Ireland The first national bank in Ireland, in effect a prototype Central Bank, was established in 1783 by the Irish parliament. This was the Bank of Ireland. It was entrusted with the management of the exchequer account. It issued the proceeds of its newly issued capital to the Irish exchequer. In the next 40 years, the Bank of Ireland had a predominant influence […]
Early 20th Century During the 19th century, bank branches penetrated the country and became involved in the increased trade and business. Deposit enchasing facilities and cheques grew in popularity. Up to 700 branches existed by the turn of the 20th century. The number of branches doubled again in the 20 years before the Irish Free State was established. The boom in banking ended in the […]
Central Bank Established The Central Bank of Ireland was established in 1943 (1942 Act) following a Commission Report from 1938. The Central Bank took over the functions of the Currency Commission in 1942, although it did not act as a Central Bank at first. It was given powers to guard the purchasing power of the country and control credit. From the 1950s onwards, the Central […]