Household deposits up in December but lending falls

Household deposits up in December but lending falls

Household deposits rose in December, according to the Central Bank

Figures from the Central Bank show an increase in households’ deposits with banks during December. Lending to consumers continued to fall, however, while lending to business also dropped back after a slight pick-up in November.

The bank said loans to households were down 3.8% compared with December 2010. The annual fall in November was 4.1%. Mortgage lending was down 2.5% over 12 months, while lending for other purposes fell by 8%.

During December, lending to households dropped by €90m, though mortgage lending was up €37m.

Lending to businesses in December was down 1.6% from a year earlier, compared with a 1.5% annual fall in November.

Business loans with terms of between one and five years are showing the biggest falls, according to the Central Bank, while short-term loans of less than one year continue to grow.

The Central Bank figures also show that private sector deposits – deposits from households, businesses, financial institutions and pension funds – grew by more than €100m during December, mainly due to an increase of more than €540m in deposits from households.

This slowed the annual rate of decline in December to 7.3%, compared with 9% in November.

The amount which has been borrowed by financial institutions from the Central Bank as part of the euro system rose by almost €4.5 billion during December to €108.4 billion. The Central Bank said this was mainly due to IFSC banks using ECB refinancing operations.

The domestic banks accounted for just under €72 billion of this, down €1.1 billion from November.

Leave a Reply