Information Release 29 February 2012
The Central Bank of Ireland today published the January 2012 Money and Banking Statistics.
The related data tables are available in the statistics area of the Central Bank website.
Loans and other credit
- Loans to households continued to decline during January 2012, and were 3.9 per cent lower on a year-to-year basis, following a decline of 3.8 per cent for the year ending December 2011. Lending for house purchase was 2.4 per cent lower on an annual basis in January 2012, while lending for consumption and other purposes declined by 8.2 per cent over the same period.
- Lending to households declined by €690 million during the month of January, based on underlying transactions, following a net monthly flow of minus €65 million in December. Developments in January were largely driven by a decline in loans for consumption purposes of €394 million, while loans for house purchase and loans for other purposes also decreased by €216 million and €80 million, respectively.
- The monthly net flow of loans to households averaged minus €373 million in the three months ending January 2012, which consists of an average net flow of minus €133 million in loans for house purchase, minus €184 million in loans for consumption purposes, and minus €56 million in lending for other purposes.
- Lending to the non-financial corporate (NFC) sector declined by 2.2 per cent in the year ending January 2012, following an annual decline of 1.6 per cent in December 2011.
- On a monthly basis, loans to NFCs decreased by €548 million during January 2012, following a decrease of €665 million in December. The monthly net flow of loans to NFCs averaged minus €391 million in the three months ending January 2012, compared with an average of minus €359 million in the three-month period up to end-December 2011.
- Short-term loans to NFCs with an original maturity of up to one year, which includes the use of overdraft facilities, decreased during the month by €140 million, following a decrease of €528 million in December 2011. Medium-term NFC loans also declined, by €437 million, while long-term loans increased by €28 million.
- On an annual basis, longer-term NFC loans with an original maturity over five years increased by 0.2 per cent in January 2012 – the first annual increase since April 2009. The pace of growth in short-term loans continued to ease, as loans with an original maturity up to one year grew by just 1.6 per cent in the year ending January 2012. Meanwhile NFC lending between one and five years original maturity declined by 8.1 per cent.
- Credit institutions’ holdings of debt and equity securities issued by the Irish private sector decreased by €384 million during the month of January, an annual rate of change in these holdings of minus 7 per cent. This follows a decline of 6.8 per cent for the year ending December 2011. Credit institutions’ holdings of OFI debt securities decreased by 7.9 per cent on an annual basis in January 2012.
Deposits and other funding
- Irish resident private-sector deposits were 7 per cent lower on an annual basis at end-January 2012, compared with a decline of 7.3 per cent over the year ending December 2011. Deposits from households were 3 per cent lower on an annual basis in January while deposits from NFCs declined by 9.1 per cent. Deposits from ICPFs and OFIs fell by 12.6 per cent over the same period.
- There was a decrease of €482 million in Irish resident private-sector deposits during the month of January. This largely reflected developments in the NFC sector, where deposits fell by almost €1.1 billion during the month. Household deposits fell by €57 million, while deposits from OFIs and ICPFs increased by €654 million.
- Overnight deposits fell by €1.1 billion during January 2012, and this was reflected across almost all private depositor sectors. Household sector overnight deposits fell by €463 million during the month, while overnight deposits from NFCs and OFIs fell by €454 million and €176 million, respectively. The ICPF sector registered a modest increase of just €14 million in overnight deposits during January.
- For the household and OFI sectors, the reduction in overnight deposits may partly reflect a shift into longer-term deposit products. Household deposits with agreed maturity up to two years increased by €443 million during the month of January, while OFIs and ICPFs also increased their deposits in this category, by €515 million and €370 million, respectively. NFC deposits with agreed maturity up to two years fell by €589 million during the month.
- Private-sector deposits from non-residents increased by just under €2 billion during January 2012, predominantly reflecting developments in the IFSC-based banks. This development included an increase of €582 million in deposits from other euro area private-sector residents during the month, while private-sector deposits from non-euro area residents increased by just under €1.4 billion. Total non-resident private-sector deposits were 6.5 per cent lower on an annual basis at end-January 2012, with deposits from other euro area private-sector entities 4.2 per cent lower, and those from non-euro area residents 8 per cent lower.
- Credit institutions’ borrowings from the Central Bank as part of Eurosystem monetary policy operations fell by €13.5 billion in January 2012, due to a decline in IFSC banks’ recourse to refinancing operations. The outstanding stock of borrowings from the Eurosystem by Irish resident credit institutions amounted to €94.9 billion at end-January. Domestic market credit institutions accounted for €71.3 billion of this total outstanding stock, following a decrease of €734 million in their recourse to Eurosystem refinancing operations during the month.
- A number of credit institutions have issued debt under the Eligible Liabilities Guarantee scheme and have retained the bonds concerned for their own use. For methodological reasons these are not included in the Money and Banking Statistics tables. At end-January 2012, the outstanding amount of these bonds was €19.9 billion.
 Domestic market credit institutions are those who have a significant level of retail business with Irish households and NFCs, and would exclude the more internationally focused banks in the IFSC. A full list of these institutions is available in the Credit, Money and Banking section of the Statistics portal of the Central Bank of Ireland website.