Information release 30 April 2012
The Central Bank of Ireland today published the March 2012 Money and Banking Statistics[i].
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 March 2012, and were 3.9 per cent lower on a year-to-year basis, following a decline of 4 per cent for the year ending February 2012. Lending for house purchase was 2.4 per cent lower on an annual basis in March 2012, while lending for consumption and other purposes declined by 8 per cent over the same period.
- Lending to households declined by €167 million during the month of March 2012 following a net monthly flow of minus €355 million in February. Developments in March were largely driven by declines in loans for consumption purposes and house purchase of €115 million and €59 million, respectively. Loans for other purposes increased by €7 million over the period.
- The monthly net flow of loans to households averaged minus €404 million in the three months ending March 2012, which consists of an average net flow of minus €166 million in loans for house purchase, minus €206 million in loans for consumption purposes, and minus €32 million in lending for other purposes.
- Lending to the non-financial corporate (NFC) sector declined by 2.2 per cent in the year ending March 2012, following an annual decline of 2.3 per cent in February 2012.
- On a monthly basis, loans to NFCs increased by €34 million during March 2012, following a decrease of €167 million in February. The monthly net flow of loans to NFCs averaged minus €227 million in the three months ending March 2012, compared with an average of minus €460 million in the three-month period up to end-February 2012.
- Short-term loans to NFCs with an original maturity of up to one year, which includes the use of overdraft facilities, increased during March by €135 million, following an increase of €209 million in February. Medium-term NFC loans also increased in March 2012, by €133 million while long-term NFC loans decreased by €235 million.
- On an annual basis, longer-term NFC loans with an original maturity over five years decreased by 1.8 per cent in March 2012. The pace of growth in short-term loans continued to increase moderately, as loans with an original maturity up to one year grew by 3 per cent in the year ending March 2012. Meanwhile NFC lending between one and five years original maturity declined by 7 per cent.
- Credit institutions’ holdings of debt and equity securities issued by the Irish private sector decreased by €415 million during the month of March, an annual rate of change in these holdings of minus 6.8 per cent. This follows a decline of 6.5 per cent for the year ending February 2012. Credit institutions’ holdings of debt securities issued by non-bank financial intermediaries (OFIs) decreased by 7.2 per cent on an annual basis in March 2012.
Deposits and other funding
- Irish resident private-sector deposits were 4.5 per cent lower on an annual basis at end-March 2012, compared with a decline of 6.0 per cent over the year ending February. Deposits from households were 0.9 per cent lower on an annual basis in March while deposits from NFCs declined by 5.3 per cent. Deposits from insurance corporations and pension funds (ICPFs) and OFIs fell by 10.2 per cent over the same period.
- There was an increase of €798 million in Irish resident private-sector deposits during the month of March. This largely reflected developments in the household sector, where deposits increased by almost €761 million during the month. The covered institutions accounted for the majority of this increase. NFC and OFI/ICPF deposits also increased by €18 million and €19 million, respectively.
- Private-sector overnight deposits increased by €674 million during March 2012. Household sector overnight deposits increased by €449 million during the month, while overnight deposits in the NFC and OFI sectors increased by €330 million and €26 million, respectively. The ICPF sector registered a decrease of €130 million in overnight deposits during March.
- Household deposits with agreed maturity up to two years increased by €334 million during the month of March, while NFCs and OFIs decreased their deposits in this category, by €269 million and €33 million, respectively. ICPF deposits with agreed maturity up to two years also fell, by €72 million, during the month.
- Private-sector deposits from non-residents fell by €222 million during March 2012, predominantly reflecting developments in the IFSC-based banks. This development included a decrease of €356 million in deposits from other euro area private-sector residents during the month, while private-sector deposits from non-euro area residents increased by €134 million. Total non-resident private-sector deposits were 5.8 per cent lower on an annual basis at end-March 2012, with deposits from other euro area private-sector entities 9.5 per cent lower, and those from the non-euro area private-sector 3.3 per cent lower.
- Total deposits from other euro area residents, including deposits from MFIs, general government and the private sector, fell by just over €10 billion during March. This was predominantly driven by a fall of €9.1 billion in deposits from MFIs, which in turn largely reflects inter-affiliate transactions by IFSC-based banks.
- Credit institutions’ borrowings from the Central Bank as part of Eurosystem monetary policy operations increased by €728 million in March 2012. The outstanding stock of borrowings from the Eurosystem by Irish resident credit institutions amounted to €87.7 billion at end-March. Domestic market credit institutions[ii] accounted for €75 billion of this total outstanding stock.
- There was an increase of €3.7 billion in domestic market credit institutions’ recourse to Eurosystem refinancing operations during March 2012. This increase reflects Irish credit institutions’ participation in the recent three-year Eurosystem longer-term refinancing operation. This was allotted on 29 February 2012 and settled (i.e. funds were credited to participating credit institutions’ reserve accounts) on 1 March 2012.
- 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-March 2012, the outstanding amount of these bonds was €12.9 billion.
[i] 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 Bank’s website. Recent data are often provisional and may be subject to revision. The extensive set of Money and Banking Statistics tables and compilation details, in Money and Banking Explanatory Notes, are also available on the Central Bank of Ireland website.
[ii] 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.