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IRB belly up

The very moment Investičná a rozvojová banka (IRB), Slovakia's third largest bank, literally closed its doors on December 18, bank insiders knew the challenge it was facing was far greater than just withstanding a bank run of panicked retail depositors. Long before the stampede of individual clients, these corporate insiders, normally IRB's colleagues on the money market, had begun gradually to limit their lending to the troubled bank. From December 15, IRB had been virtually unable to borrow anything.

Three days later, the embattled bank came crawling to the central bank for help.

Vol. 4 No. 1, Jan. 15-28, 1998

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