31 August 2012
The Central Bank of Ireland today published the July 2012 Money and Banking Statistics.
View information release with charts and related data tables.
Loans and other credit
- Loans to households continued to decline during July 2012 and were 3.6 per cent lower on an annual basis, following a decline of 3.7 per cent for the year ending June 2012. Lending for house purchase was 2.1 per cent lower on an annual basis in July 2012, while lending for consumption and other purposes declined by 7.8 per cent over the same period.
- Lending to households declined by €471 million during the month of July, following a net monthly increase of €55 million in June. Developments in July were mostly driven by a decline in loans for consumption of €225 million. Loans for house purchase also fell by €157 million, while loans to households for other purposes declined by €88 million.
- The monthly net flow of loans to households averaged minus €227 million in the three months ending July 2012, which consists of average net flows of minus €102 million in loans for house purchase, minus €73 million in loans for consumption purposes, and minus €52 million in lending for other purposes.
- Lending to Irish resident non-financial corporations (NFCs) declined by 3.4 per cent in the year ending July 2012, following an annual decline of 2.9 per cent in June 2012.
- On a monthly basis, loans to NFCs decreased by €297 million during July, following a decrease of €399 million in June. The monthly net flow of loans to NFCs averaged minus €345 million in the three months ending July 2012, compared with an average of minus €354 million in the three-month period up to end-June 2012.
- Short-term loans to NFCs with an original maturity of up to one year, which includes the use of overdraft facilities, increased by €162 million during July 2012. This followed a decline of €571 million in June. Longer-term loans with an original maturity over five years also increased during July, by €214 million, while medium-term NFC loans fell by €673 million.
- On an annual basis, longer-term NFC loans with an original maturity over five years fell by 0.2 per cent in July 2012. Short-term NFC loans continued to increase, as loans with an original maturity up to one year grew by 0.6 per cent in the year ending July 2012. Meanwhile, NFC lending between one and five years original maturity declined by 10.6 per cent over the period.
- Credit institutions’ holdings of debt and equity securities issued by the Irish private sector increased by €122 million during the month of July 2012, with an annual rate of change of minus 10.5 per cent. This follows a decline of 10.9 per cent for the year ending June 2012. The increase in holdings of private-sector securities during July reflects developments in holdings of debt securities issued by Other Financial Intermediaries (OFIs).
Deposits and other funding
- Irish resident private-sector deposits were 0.8 per cent lower on an annual basis at end-July 2012, compared with a decline of 2.5 per cent over the year ending June. Deposits from households were 0.1 per cent lower on an annual basis in July, while deposits from Insurance Corporations and Pension Funds (ICPFs) and OFIs fell by 3 per cent. Deposits from NFCs increased by 0.1 per cent over the same period.
- There was a month-on-month increase of €1.9 billion in Irish resident private-sector deposits during July 2012. This increase was dominated by developments in the OFI sector where deposits increased by €1.4 billion, partly reflecting inter-affiliate transactions. NFC deposits also increased by €465 million during July, while deposits from ICPFs increased by €216 million. Household deposits fell by €159 million over the same period.
- Private-sector overnight deposits increased by €1.4 billion during July 2012, largely reflecting developments in the OFI sector where overnight deposits increased by €1 billion. Overnight deposits from the NFC sector also increased in July, by €533 million, while ICPF overnight deposits grew by €47 million. Household sector overnight deposits declined by €248 million during the month.
- Household deposits with agreed maturity up to two years increased by €214 million during the month of July 2012. Deposits in this category from OFIs and ICPFs also increased during the month, by €223 million and €124 million, respectively. NFC deposits with agreed maturity up to two years fell by €60 million over the same period.
- Private-sector deposits from non-residents increased by €1.5 billion during July 2012, predominantly reflecting developments in the IFSC-based banks. There was a decrease of €678 million in deposits from other euro area private-sector residents during the month, while private-sector deposits from non-euro area residents increased by €2.2 billion. Total non-resident private-sector deposits were 5.3 per cent lower on an annual basis at end-July 2012, with deposits from other euro area private-sector entities being 8.5 per cent lower, and those from the non-euro area private sector 3.3 per cent lower.
- Total deposits from non-residents, including deposits from MFIs, general government and the private sector, fell by €5.7 billion during July 2012, largely driven by developments in deposits from affiliated non-resident credit institutions.
- Credit institutions’ borrowings from the Central Bank as part of Eurosystem monetary policy operations declined by €3.9 billion in July 2012. The outstanding stock of borrowings from the Eurosystem by Irish resident credit institutions amounted to €84.4 billion at end-July. Domestic market credit institutions accounted for €71.9 billion of this total outstanding stock.
- 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-July 2012, the outstanding amount of these bonds was €10.1 billion.
 Money and Banking statistics are compiled in respect of business written out of all within-the-State offices of both credit institutions authorised to carry on banking business in the State under Irish legislation and credit institutions authorised in other Member States of the EU operating in Ireland on a branch basis. Credit institutions authorised in other EU Member States operating in Ireland on a cross-border basis, i.e. with no physical presence in the State, are not included in the statistics. A full list of Credit Institutions resident in the Republic of Ireland is available on the Central Bank of Ireland website. Recent data are often provisional and may be subject to revision. The extensive set of Money and Banking Statistics tables are also available on the Central Bank website, along with the detailed Money and Banking Explanatory Notes.
 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.