Money and Banking Statistics - July 2015

View full release with charts and related data tables.

Summary

Credit to households and non-financial corporations continued to contract on a monthly and on an annual basis, as repayments exceeded new lending. Deposits from non-financial corporations and households increased on a monthly basis.

Loans and other credit

• Irish household loan repayments exceeded drawdowns by €346 million during July 2015, following a decline of €163 million in June. Developments in July were predominantly driven by declines in loans for house purchase, while loans for consumption and other purposes also declined by €99 million during the month.
• Loans to households decreased by 2.8 per cent year-on-year in July 2015. Loans for house purchase, which accounted for 83 per cent of total household loans, declined at an annual rate of 2.6 per cent. Lending for consumption and other purposes declined by 3.5 per cent year-on-year.
• In the case of loans for house purchase, repayments exceeded drawdowns by €2.1 billion over the 12 months to end-July 2015. Repayments also exceeded drawdowns by €640 million for non-housing loans over the same period.
• Irish NFC loan repayments exceeded drawdowns by €197 million in July 2015. Developments in July reflect declines in short-term and long-term NFC loans of €323 million and €349 million respectively, whilst medium-term loans increased by €477 million.
• Lending to NFCs reported a year-on-year decline of 6.9 per cent in July 2015, following an annual decrease of 7.6 per cent in June. This resulted from annual declines for the up to one year and over five year categories, of 15.1 per cent and 9.5 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 14.4 per cent.
• Over the 12 months to end-July 2015, repayments of NFC loans exceeded drawdowns by €4.1 billion. The declines in the up to one year and over five year categories were €3.2 billion and €2.5 billion respectively, while the over one and up to five year category recorded an increase of €1.7 billion.
• Credit institutions’ holdings of debt and equity securities issued by the Irish private-sector decreased by €138 million during July 2015, following a decrease of €762 million in June. The decrease in holdings of private-sector securities during July was mainly attributable to developments in the OFI sector. The annual rate of decline in credit institutions’ holdings of debt and equity securities issued by the Irish private sector was 15.7 per cent at end-July.

Deposits and other funding

• The outstanding stock of Irish private-sector deposits totalled €175 billion at end-July 2015. Of this, 54 per cent represented household deposits, with NFC, OFI and ICPF deposits accounting for 24 per cent, 17 per cent and 6 per cent, respectively.
• Household deposits increased by €673 million in July. For the 12 months ending July 2015 household deposits increased by €2.1 billion. There have been strong inflows into overnight deposits, growing by €7.2 billion over the 12 months to end-July. Conversely, deposits with agreed maturities declined by €5.2 billion over the same period.
• NFC deposits increased by €1.4 billion in July, marking a first increase since April 2015. This increase was driven by developments in the overnight category which saw a €848 million increase over the month. Net inflows of NFC deposits for the 12 months to end-July amounted to €5.4 billion; this increase was mostly attributable to the overnight deposit category which reported an increase of €5.1 billion. Agreed maturity and redeemable at notice categories registered an increase of €254 million over the same period.
• OFI deposits increased by €530 million in July, which was driven by an increase in overnight deposits and deposits with agreed maturities. However, the annual rate of change in OFI deposits was minus 16.8 per cent in July 2015.
• Deposits from ICPFs fell by 1.6 per cent on an annual basis at end-July. This change was driven by developments in the agreed maturity categories of ICPF deposits which have shown a net outflow of €882 million over the period.
• Credit institutions’ borrowings from the Central Bank as part of Eurosystem monetary policy operations increased by €2.6 billion in July 2015. The outstanding stock of these borrowings was €14.8 billion at end-July, of which the domestic market group of credit institutions accounted for €12.1 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.

____________________________________________________________________

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 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.