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News : Irish Economy Last Updated: Jul 1, 2011 - 9:12 AM


Irish household bank deposits fell by €709m in May; Domestic banks' central bank borrowing was €74bn
By Finfacts Team
Jun 30, 2011 - 11:02 AM

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Source: Central Bank of Ireland

The Central Bank reported today that Irish household bank deposits fell by €709m in May. Domestic banks' central bank borrowing was €74bn.

Loans to households were 4.8% lower on a year-to-year basis at end-May 2011, compared to a decline of 4.6% in the twelve months ending April 2011. Lending for house purchase was 2.1% lower on an annual basis in May, while lending for consumption and other purposes declined by 13.6%.

Household lending declined during the month of May 2011 by €449m, based on underlying transactions, following a net monthly flow of minus €570m in April. The decline in May was predominantly driven by a fall of €262m in loans for house purchase. Loans for consumption purposes also fell during May, by €156m, following a sharp decline during the previous month of €341m. Lending to the household sector for other purposes fell by €31m in May.

The monthly net flow of loans to households averaged minus €468m in the three months ending May 2011, which consists of an average net flow of minus €234m in consumer loans, minus €208m in loans for house purchase and minus €26m in lending for other purposes.

Lending to the non-financial corporate (NFC) sector declined by 2.6% in the year ending May 2011, following an annual decline of 2.3% in April.

NFC lending declined by €87m during the month of May, based on underlying transactions, following a very sharp decline of €708m in the previous month. The monthly net flow of loans to NFCs averaged minus €266m in the three months ending May 2011.

The Central Bank said the annual rate of decline in Irish resident private-sector deposits slowed to 8.7% at end-May 2011, following a decline of 9.1% over the twelve months ending April. Deposits from households were 5.7% lower in May on an annual basis, while NFC deposits fell by 10.9%. Deposits from other financial intermediaries (OFIs) and insurance corporations and pension funds (ICPFs) declined at an annual rate of 13.1%.

There was an underlying decline of €752m in Irish resident private-sector deposits during May. This was driven almost entirely by household deposits, which fell by €709m during the month. NFC deposits fell by just €36m during May, following sharp declines in the previous three months, while deposits from OFIs/ICPFs fell by €8m.

Overnight deposits from Irish households declined by €629m during May. However, overnight deposits increased across all other depositor sectors during the month, by €115m, €179m and €193m for NFCs, OFIs and ICPFs respectively.

Short-term savings deposits, i.e. redeemable at notice up to three months, declined by €383m during May. Households’ deposits in this category were €293m lower at end-May, with the annual rate of change falling to minus 19.8%.

Private-sector term deposits with agreed maturity up to two years fell by €224m during May. Underlying this was a decline in NFC deposits of €134m. OFI and ICPF deposits of the same maturity also fell during the month, by €233m and €74m respectively. Household deposits with agreed maturity up to two years increased by €217m during the month.

Private-sector deposits from other Eurozone residents declined by 9.7% over the year ending May 2011, whereas those from non-Eurozone residents were 28.2% lower. The underlying net monthly flow of deposits from other Eurozone residents was minus €428m in May, while for non-Eurozone residents there was an increase of €348m.

Credit institutions’ borrowings from the Central Bank as part of Eurosystem monetary policy operations fell by €3.8bn in May 2011, to €102.3bn. Domestic market credit institutions accounted for €74.4bn of this outstanding stock.

The Central Bank reported today that Irish household bank deposits fell by €709m in May. Domestic banks' central bank borrowing was €74bn.

Loans to households were 4.8% lower on a year-to-year basis at end-May 2011, compared to a decline of 4.6% in the twelve months ending April 2011. Lending for house purchase was 2.1% lower on an annual basis in May, while lending for consumption and other purposes declined by 13.6%.

Household lending declined during the month of May 2011 by €449m, based on underlying transactions, following a net monthly flow of minus €570m in April. The decline in May was predominantly driven by a fall of €262m in loans for house purchase. Loans for consumption purposes also fell during May, by €156m, following a sharp decline during the previous month of €341m. Lending to the household sector for other purposes fell by €31m in May.

The monthly net flow of loans to households averaged minus €468m in the three months ending May 2011, which consists of an average net flow of minus €234m in consumer loans, minus €208m in loans for house purchase and minus €26m in lending for other purposes.

Lending to the non-financial corporate (NFC) sector declined by 2.6% in the year ending May 2011, following an annual decline of 2.3% in April.

NFC lending declined by €87m during the month of May, based on underlying transactions, following a very sharp decline of €708m in the previous month. The monthly net flow of loans to NFCs averaged minus €266m in the three months ending May 2011.

The Central Bank said the annual rate of decline in Irish resident private-sector deposits slowed to 8.7% at end-May 2011, following a decline of 9.1% over the twelve months ending April. Deposits from households were 5.7% lower in May on an annual basis, while NFC deposits fell by 10.9%. Deposits from other financial intermediaries (OFIs) and insurance corporations and pension funds (ICPFs) declined at an annual rate of 13.1%.

There was an underlying decline of €752m in Irish resident private-sector deposits during May. This was driven almost entirely by household deposits, which fell by €709m during the month. NFC deposits fell by just €36m during May, following sharp declines in the previous three months, while deposits from OFIs/ICPFs fell by €8m.

Overnight deposits from Irish households declined by €629m during May. However, overnight deposits increased across all other depositor sectors during the month, by €115m, €179m and €193m for NFCs, OFIs and ICPFs respectively.

Short-term savings deposits, i.e. redeemable at notice up to three months, declined by €383m during May. Households’ deposits in this category were €293m lower at end-May, with the annual rate of change falling to minus 19.8%.

Private-sector term deposits with agreed maturity up to two years fell by €224m during May. Underlying this was a decline in NFC deposits of €134m. OFI and ICPF deposits of the same maturity also fell during the month, by €233m and €74m respectively. Household deposits with agreed maturity up to two years increased by €217m during the month.

Private-sector deposits from other Eurozone residents declined by 9.7% over the year ending May 2011, whereas those from non-Eurozone residents were 28.2% lower. The underlying net monthly flow of deposits from other Eurozone residents was minus €428m in May, while for non-Eurozone residents there was an increase of €348m.

Credit institutions’ borrowings from the Central Bank as part of Eurosystem monetary policy operations fell by €3.8bn in May 2011, to €102.3bn. Domestic market credit institutions accounted for €74.4bn of this outstanding stock.

Source: Central Bank of Ireland

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