In an interview with Bloomberg Television, Ms Knight implied that it is crucial struggling economies such as Spain, Portugal and Greece are not hit by further instability and said the eyes of the continent are currently focused on Ireland.
"We don't [want to] start to see [similar crises] rolling too fast across Europe," she told the broadcaster. "We look to Ireland to take both the assistance that is financially offered to it but also the assistance in the way of advice offered."
Ireland formally applied for an EU bailout earlier this month and is expected to receive around â¬85 billion ($117 billion) in aid from the trading bloc.
Yesterday (November 24th 2010), reports suggested that Allied Irish Bank and the Bank of Ireland could be nationalised by the country's government in return for monetary assistance.
By Asim Shah