Money and Banking Statistics – August 2015

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Summary

Lending to households continued to contract on a monthly and on an annual basis, as repayments exceeded new lending. Strong annual growth in deposits from NFCs continued to be driven by significant inflows into overnight deposits.

Loans and other credit

• Irish household loan repayments exceeded drawdowns by €252 million during August 2015. Developments in August were driven by declines in loans for house purchase and loans for other purposes, which outweighed the increase in loans for consumption purposes. In contrast, loans for consumption purposes increased by €14 million in August reversing four months of negative transactions.
• On an annual basis, lending to households continued to fall, decreasing by 2.7 per cent in August 2015. Lending for house purchase continued to decline at an annual rate of 2.6 per cent; this rate has remained fairly stable since December 2014. Lending for consumption and other purposes declined by 3.1 per cent year-on-year.
• In terms of loans for house purchase, repayments exceeded drawdowns by €2.1 billion over the 12 months to end-August 2015, while non-housing loans declined by €558 million over the same period.
• Irish NFC loan repayments exceeded drawdowns by €143 million in August 2015. Short-term loans decreased by €321 million over the month; this was offset by developments within medium-term and long-term NFC loans which showed increases of €118 million and €59 million, respectively.
• Lending to NFCs reported a year-on-year decline of 6.1 per cent in August 2015. This resulted from annual declines for the up to one year and over five year categories, of 15.0 per cent and 7.4 per cent respectively. In contrast, the over one and up to five year category, which accounted for the smallest share of NFC loans outstanding, continued to grow, recording an annual increase of 13.2 per cent.
• The net flow of NFC loans over the 12 months to end-August 2015 was minus €3.6 billion. The most pronounced declines were seen in the up to one year and over five year categories of €3.1 billion and €2.0 billion respectively, while the over one and up to five year category recorded an increase of €1.5 billion.
• Credit institutions’ holdings of debt and equity securities issued by the Irish private-sector decreased by €218 million during August 2015, following a decrease of €138 million in July. A decrease of €212 million in holdings of debt securities issued by the OFI sector was the predominant reason for the fall in August. The annual rate of decline in credit institutions’ holdings of debt and equity securities issued by the Irish private sector was 12.6 per cent at end-August.

Deposits and other funding

• The outstanding stock of Irish private-sector deposits totalled €176 billion at end-August 2015. Of this, 53 per cent represented household deposits, with NFC, OFI and ICPF deposits accounting for 25 per cent, 16 per cent and 5 per cent, respectively. Irish private-sector deposits increased by €1 billion over the month, which was driven by inflows from the NFC sector.
• NFC deposits increased by €1.3 billion in August. This increase was driven by developments in the overnight deposit category which saw a €1.5 billion increase, marking the largest increase within this category since December 2014. Net inflows of NFC deposits for the 12 months to end-August amounted to €6.1 billion. This resulted in an annual growth rate of 16.2 per cent, primarily due to increases in overnight deposits.
• Household deposits decreased by €129 million in August. However, over the 12 months to end-August 2015 household deposits increased by €1.6 billion, or 1.7 per cent. This increase was mostly attributable to a 12.6 per cent increase in overnight deposits, while deposits with agreed maturities continued to decline annually.
• OFI deposits increased by €102 million in August. The annual rate of change in OFI deposits, however, remained negative, at 15.0 per cent in August 2015.
• Deposits from ICPFs declined in August by €237 million, following a decrease of €223 in July. On an annual basis, deposits from ICPFs fell by 1.9 per cent. This change was driven by developments in the agreed maturity categories of ICPF deposits which have shown a net outflow of €1 billion over the past twelve months.
• Credit institutions’ borrowings from the Central Bank as part of Eurosystem monetary policy operations decreased by €4.7 billion in August 2015. The outstanding stock of these borrowings was €10.1 billion at end-August, of which the domestic market group of credit institutions accounted for €8.8 billion.

Note

Money and Banking Statistics¹ currently include an aggregate balance sheet for the entire population of resident credit institutions, reported in Table A.4. Please note that the composition of the subsets of the population reported in Tables A.4.1 and A.4.2 have been updated as follows:

A.4.1 – Domestic Market Group: Institutions whose ultimate parent entity is resident in Ireland (including credit unions), or which have a significant (>20 per cent) level of business with Irish households and non-financial corporations in terms of their overall resident business activity.

A.4.2 – Irish-Headquartered Group: Institutions whose ultimate parent entity is resident in Ireland. This includes all credit unions.

A full list of credit institutions resident in the Republic of Ireland, as well as the subset of institutions that comprise the Domestic Market Group, are available in the Credit, Money and Banking section of the Central Bank website.
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¹ 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(link4 - Credit Institutions Resident in the Republic of Ireland.pdf) 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.