| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : Irish Economy Last Updated: Dec 30, 2010 - 2:54 PM


Central Bank says lending to Irish households and businesses fell again in November; ECB lending to banks rose by €11.7bn in to €97.3bn
By Finfacts Team
Dec 30, 2010 - 2:49 PM

Email this article
 Printer friendly page

The Central Bank reported today that lending to Irish households and businesses fell again in November.  European Central Bank (ECB) lending to banks rose by €11.7bn in November, bringing the total borrowed to €97.3bn.

The annual rate of change in loans to households was minus 4.8% in November 2010, following a similar annual decline in October. Lending for house purchase was 1.7% lower on an annual basis in November 2010, whereas lending for consumption and other purposes had declined by 15.6%.

The net flow of household lending during the month of November 2010 was minus €193m, following a revised net monthly flow of minus €783m in October. Underlying the negative net monthly flow of household loans in November was a contraction of €212m in loans for house purchase. Consumer loans declined by €71m, whereas lending to the household sector for other purposes, which would include lending to partnerships, sole traders and individuals for investment purposes rose by €19m. The rise in ‘other’ lending was due to a combination of interest capitalisation on developer loans and newly sanctioned loan draw-downs.

The monthly net flow of loans to households averaged minus €418m in the three months ending November 2010, which consists of an average net flow of minus €163m in loans for house purchase, minus €272m in consumer loans and €17m in lending for other purposes.

Lending to the non-financial corporate (NFC) sector declined by 1.9% in the year ending November 2010, following a revised annual decline of 1.8% in October. There have been revisions to the April 2010 data, which have now been reflected in the transactions and growth rates for loans to NFCs. These have generally led to lower rates of contraction in NFC lending than in previous releases of the data.

In aggregate, NFC loan repayments were €184m greater than draw-downs during November. The monthly net flow of loans to NFCs averaged minus €308m in the three months ending November 2010.

Developments in loans to NFCs during November saw a rise of €25m in shorter term loans with an original maturity of up to one year being more than offset by a decline in medium and longer term loans of €10m.

Developments in loans to NFCs during November saw a rise of €625m in shorter term loans with an original maturity of up to one year being more than offset by a decline in medium and longer term loans of €810m.

NFC loans with an original maturity of over five years continue to have the most significant contraction on an annual basis; falling by 8.7% in the year ending November 2010. Short-term NFC loans up to one year maturity, which would include the use of overdraft facilities, were 8.3% higher in November 2010 on an annual basis.

Credit institutions’ holdings of debt and equity securities issued by the Irish private sector rose by €5.3bn in November 2010. The increase during November mostly relates to a rise in the holdings of debt securities issued by other financial intermediaries (OFIs), most notably debt issued by the NAMA SPV (special purchase financial vehicle) in purchasing land and development loans from participating institutions. The NAMA transfer process has also been the main factor in the year-on-year growth rates of credit institutions’ holdings of OFI debt securities, which reached 51.2% in November 2010.

Deposits and other funding

Deposits from the Irish resident private sector were 6.7% lower on a year-to-year basis in November 2010. The annual rate of change in deposits from Irish households was minus 4.5%, whereas deposits from Irish NFCs fell by 14.9% on an annual basis in November. Deposits from OFIs and insurance corporations and pension funds (ICPFs) declined by 4.3% over the period.

There was a negative net monthly flow of Irish resident private-sector deposits during November totalling €5.2bn, bringing the three-month average net flow to minus €2.1bn. This is in comparison to an average net monthly flow of Irish resident private-sector deposits of minus €677m in the three months ending October 2010. The negative net monthly flow of Irish private-sector deposits in November was primarily due to a fall in household and OFI/ICPF deposits.

Total overnight deposits from the Irish private sector were 5.3% lower on an annual basis in November 2010.

Private-sector term deposits with agreed maturity up to two years, declined by approximately €2bn during November, mostly due to households reducing their deposits in this category. Total private-sector deposits in this category declined by €10.8bn, or 14.8% in the year ending November 2010.

Credit institutions’ borrowings from the Central Bank as part of Eurosystem monetary policy operations (including IFSC companies) increased by €8.2bn in November 2010, to €138.2bn. Domestic market credit institutions2 accounted for €97.3bn of this outstanding stock, an increase of €11.7bn during the month.

Related Articles
Related Articles


© Copyright 2010 by Finfacts.com

Top of Page

Irish Economy
Latest Headlines
Finfacts launches new news site
Irish Farmers & Milk Prices: 'Shackles' off in April; Demanding safety-net in August
Irish pension managed funds returns at over 12% year-to-date in 2015
Irish chartered accountants' salary packages surge 13% in 12 months
Irish services PMI fastest rate since late 2006; Official data up only 2.4% in 12 months
Irish Economy: Tax €893m above target in year to July — €653m from corporation tax
Fact and Fiction: Time to review Ireland's economic statistics?
Irish M&A deals H1 2015: Dutch or UK firm acquires Irish firm for €32.6bn - they are both American
Irish manufacturing PMI strong in July
Irish Economy: Fall in GNP in Q1 2015; GDP rises
Irish Economy 2015: Central Bank lauds strong recovery; Time to start paying down debt
Irish Budget 2016: Ibec demands 20 tax cuts, spending and investment rises
Low pay in Ireland; Lowest social security & corporate taxes in Europe
Ireland vs Greece: Enda Kenny's false claims on growth, taxes and debt
Irish standard of living in 2014 below Euro Area average, Italian level; Prices 5th highest in EU28
Irish goods exports rose a record 30% in April - due to fake tax-related transactions
Mexican tall ship to sail into Dublin on June 17th
Irish industrial production up 20% in first four months of 2015; Construction down 2.6% in first quarter
Irish Economy 2015: ESRI slams return to boom-time pro-cyclical fiscal policy
Irish pension fund returns in average range 1.6% - 1.8% in May 2015
Irish service sector PMI remains strong; Tax avoidance clouds data
Ireland: Official unemployment rate at 9.8% in May; Broad rate at 19% — 440,000 people
Ireland: Fiscal Council warns of dodgy forecasts, no plan; OECD warns of new property bubble
Irish Public Finances: Tax revenue in first five months of 2015 €734m ahead of target
No simple measure of economic progress in Ireland: GDP & GNP defective
Irish manufacturing PMI rises in May; Production up unbelievable 45% in year to March!
ESRI says data volatility hinders Irish economic forecasting; Tax avoidance taboo cause
Ireland at 16 in international competitiveness ranking; US, Singapore and Hong Kong on top
Irish Economy 2015: Sectors to add 200,000 jobs?; Broad jobless rate at 19%
Irish Export Performance: Myths and reality - Ireland is a poor exporter
Irish Economy: 41,300 jobs added in 12 months to Q1 2015 - Construction up 19,600
China-Ireland: Economic relationship on a slow burn
Estonia, Austria, France, Ireland head global alcohol rankings
Irish Exchequer Returns: Tax receipts under target in April but ahead in year
Irish service sector PMI rose in April
Irish manufacturing PMI remained strong in April- includes overseas manufacturing
Irish Live Register + 90,000 activation scheme numbers at 439,000 in April
Ireland: Coalition drops 2018 full-employment target
Ireland Spring Statement: Noonan promises 200,000 net new jobs by 2018
Irish Economy 2015: Retail sales volume up 1.4% in month of March