|Irish Central Bank |
The Central Bank said today that loans to the Irish non-financial business
sector fell in October. Irish resident private-sector deposits rose in the
The annual rate of change in loans to households was minus 4.9 %
in October 2010, following an annual decline of 4.5 % in September. Lending for
house purchase was 1.6 % lower on an annual basis in October 2010, whereas
lending for consumption and other purposes had declined by 16.3 %.
The net flow of household lending during the month of October 2010 was minus
€870m, following a net monthly flow of minus €279m in September. The negative
net monthly flow of household loans in October was primarily due to a
contraction of €677m in consumer and other non-housing loans. The net flow of
household loans has been negative every month so far in 2010, totalling almost
minus €7bn up to end-October, compared with a net flow of minus €1.7bn over the
same period in 2009.
The monthly net flow of loans to households averaged minus €476m in the three
months ending October 2010, which consists of an average net flow of minus €159m
in loans for house purchase, minus €209m in consumer loans and minus €108m in
lending for other purposes.
Lending to the non-financial corporate (NFC) sector declined by 5.2 % in the
year ending October 2010, following an annual decline of 3 % in September.
In aggregate, NFC loan repayments were €2.6bn greater than draw-downs during
October. The monthly net flow of loans to NFCs averaged minus €1.1bn in the
three months ending October 2010 and has been negative in all but two months in
2010 so far.
Developments in loans to NFCs during October were dominated by a €1.6bn (4.3 %)
decline in medium term loans of maturity between one and five years. NFC loans
of shorter maturity (up to one year) fell by €385m during the month (1.3 %),
whereas longer-term loans over five years maturity declined by €563m (1.4 %).
|Irish Central Bank |
Deposits from the Irish resident private sector were 4.1 % lower on a
year-to-year basis in October 2010. The annual rate of change in deposits from
Irish households was minus 2.4 %, whereas deposits from Irish NFCs fell by 15.4
% on an annual basis in October. Deposits from OFIs (other financial
intermediaries) and insurance corporations and pension funds (ICPFs) grew by 2.5
% over the period.
There was a positive net monthly flow of Irish resident private-sector deposits
during October totalling €1.6bn, bringing the three-month average net flow to
minus €677m. This is in comparison to an average net monthly flow of Irish
resident private-sector deposits of minus €1.4bn in the three months ending
The positive net monthly flow of Irish private-sector deposits in October was
reflected across all sectors, but was primarily due to a rise in OFI.
ECB Funding to Irish Banks
Credit institutions’ borrowings from the Central Bank as part of
Eurosystem monetary policy operations increased by €8.9bn in October 2010, to
€130bn. Domestic market credit institutions accounted for €85.7bn of this
outstanding stock, an increase of €2.7bn during the month.