Money and Banking Statistics – November 2015

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Summary

NFC drawdowns exceeded repayments by €379 million in November – the largest monthly increase since September 2011. Meanwhile, household deposits declined by €653 million in November, partially reversing the strong increase seen in October. The negative household deposit flow in November reflects seasonal factors and is consistent with trends for the past twelve years.

Loans and other credit

• Irish NFC loan drawdowns exceeded repayments by €379 million in November; this is the largest increase since September 2011. This monthly increase was driven by loans in the up to one year and one to five year categories which increased by €217 million and €274 million, respectively. These increases were somewhat offset by loans in the over 5 year category which declined by €111 million.
• The net flow of NFC loans over the 12 months to end-November 2015 was minus €4.4 billion, with the most pronounced fall, of €3.6 billion, seen in the up to one year category.
• Lending to Irish resident NFCs recorded a year-on-year decline of 7.4 per cent in November 2015, following an annual decline of 7.7 per cent in October. This resulted from annual declines in the up to one year and over five year categories. In contrast, the over one and up to five year category recorded an annual increase of 11.9 per cent.
• Repayments of loans for house purchase exceeded new drawdowns by over €2 billion in the 12 months to end-November 2015. Repayments also exceeded drawdowns by €525 million for non-housing household loans over the same period.
• Total Irish household loan repayments exceeded drawdowns by €282 million during November. This followed a decrease of €254 million in October. Developments in November were mainly driven by a decline in lending for house purchase of €315 million, while loans for consumption and other purposes increased slightly by €33 million.
• Loans to households decreased by 2.7 per cent year-on-year in November 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 3.1 per cent during the year.
• Loan repayments from Irish other financial intermediaries (OFIs) exceeded drawdowns by €620 million in November, following a decrease of €443 million in October. The net flow of OFI loans over the 12 months to end-November 2015 was minus €10.2 billion.
• Credit institutions’ holdings of debt and equity securities issued by the Irish private-sector decreased by €197 million during November, following a decrease of €1.7 billion in October. The decrease in holdings of debt and equity securities during November 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 20.1 per cent at end-November.

Deposits and other funding

• The outstanding stock of Irish private-sector deposits totalled €176 billion at end-November. Of this, 54 per cent represented household deposits, with NFC, OFI and ICPF deposits accounting for 24 per cent, 17 per cent and 5 per cent, respectively. Irish private-sector deposits decreased by €2.4 billion over the month, which was mainly driven by outflows from the NFC sector, with the majority of the decrease coming from overnight deposits.
• Household deposits decreased by €653 million in November; this follows an increase of €1.1 billion in October. The negative flow in November is consistent with trends for the past twelve years. Over the 12 months to end-November 2015, household deposits increased by €2.5 billion, or 2.7 per cent. There have been strong inflows into overnight deposits, growing by €7.3 billion over the 12 months to end-November 2015 (see Chart 3 below). Conversely, deposits with agreed maturity declined by €5.2 billion over the same period.
• NFC deposits decreased by almost €1.7 billion in November; this was the largest decrease since March 2010. This decrease was mostly driven by developments in the overnight deposit category, where there was a €1.3 billion net decrease over the month. There was also a decline in the agreed maturity category of €365 million. NFC deposits increased by €3.6 billion, or 9.2 per cent year-on-year, which was mainly driven by a €3.7 billion (13.2 per cent) increase in overnight deposits.
• OFI deposits increased by €171 million in November; this was the only sector to increase its deposits during the month. This follows an increase of €1 billion in October. However the annual rate of change in OFI deposits remained negative, at minus 17.2 per cent in November 2015. Conversely there was an increase in overnight deposits over the year of 21.6 per cent
• Deposits from insurance corporations and pension funds (ICPFs) declined in November by €234 million, following an increase of €296 million the previous month. On an annual basis, deposits from ICPFs fell by 0.1 per cent. The annual increase in overnight deposits from this sector was entirely offset by decreases in the agreed maturity categories.
• Credit institutions’ borrowings from the Central Bank as part of Eurosystem monetary policy operations decreased by €55 million in November; this follows an increase of €130 million in October. The outstanding stock of Central Bank borrowings was €10.3 billion at end-November 2015, of which the domestic market group of credit institutions accounted for €9.6 billion, or 93 per cent.

Note

Money and Banking Statistics 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.